Joe Cavatoni

Gold's pullback to around $4,000 is a good buying opportunity. The rally to $5,500 was overstretched and driven by geopolitical rhetoric, but the strategic case remains intact: record sovereign debt levels eroding fiat currency value, central banks continuing to accumulate gold as there is no viable large-scale alternative to the dollar, and sticky Asian demand motivated by diversification. Short-term headwinds from high real rates are pressuring Western investors, but once clarity emerges from the Fed and geopolitical tensions ease, gold could quickly regain upward momentum and target $5,000 over the next five years.