Tariq Al-Rifai, international financial analyst, talked with Proactive about the recent volatility in gold prices following a dramatic rise to record highs and a sharp pullback.
He noted that gold has dropped nearly 10% after its recent spike, raising questions about whether this marks the beginning of a bear market. However, Al-Rifai believes the decline could simply be a correction in an ongoing upward trend. “It doesn't necessarily mean that the rise or the bull market is over for gold,” he said.
Al-Rifai highlighted that while gold experienced a rapid rise reminiscent of a "melt-up," the metal has been on a steady upward trajectory for years—even predating the COVID-19 pandemic. He pointed out that many investors who purchased gold in 2019, when it was around $1,100 an ounce, have seen substantial gains.
He also challenged the widespread belief that gold is purely a hedge against inflation. “It is a hedge against, I guess, reckless central banks, reckless governments,” he explained, noting ongoing concerns about sovereign debt and deficits.
For potential investors, Al-Rifai suggested that gold remains a strong long-term asset, though it may be too volatile for short-term trades.
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