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Veteran strategist Jeff Currie turns bullish on gold. Here’s why
CNBC • • business
Key Points:
- Gold is expected to experience continued volatility in the short term but is on a long-term upward trajectory, driven primarily by strong central bank demand, according to market strategist Jeff Currie.
- Central banks, especially in emerging markets like China, Turkey, India, and Poland, have been "insatiable" buyers of gold since 2022, fueling a significant rally in bullion prices.
- The recent sell-off in gold, marking its worst quarter in 13 years, was due to transient factors such as Middle Eastern countries selling gold to raise cash amid the Strait of Hormuz blockade and emerging markets selling gold to buy oil.
- Currie highlights that central banks are diversifying reserves away from potentially sanctionable fiat currencies like the U.S. dollar, increasingly storing gold domestically to mitigate geopolitical and inflation risks.
- Despite expected volatility, Currie believes precious metals will see higher price spikes and higher lows over time, reflecting their role as a safe haven asset in uncertain global conditions.
