Gold Price Decline Seen as Temporary, Hedge Fund Manager Says
Australia-based hedge fund manager Raphael Lamm expects the recent decline in gold prices to be temporary, according to Bitget. The long-short gold fund he co-manages with Mark Landau has delivered a net return of over 200% since its launch last year. Lamm points out that the 'unsustainability of fiscal situations' and growing central-bank allocations will support gold in the medium to long term.
The US-Iran war, real interest rates, and inflation data are driving gold prices in the near term, said Lamm. The price has dropped about 16% since late February, but Lamm believes this is a short-term phenomenon.
Lamm's A$1.5 billion ($1.1 billion) fund has been adding to its long gold equity positions during the decline and now holds a net 18% of long positions. The fund also shorts some gold stocks it views as expensive or facing operational headwinds.