Gold’s pullback creates attractive entry as de-dollarization turns structural – KMLM’s Prior
Gold's recent correction has raised a familiar question: Is the bull market over, or is this an entry point?
CIO of Managed Futures and COO at Mount Lucas Management (sub-advisor to KMLM), Jerry Prior, told Neils Christensen at Kitco News that the structural case remains intact and that the pullback may be a potential opportunity. KMLM provides exposure to 22 liquid futures contracts traded on U.S. and foreign exchanges, including gold.
"I think, given the repricing of gold here, it's probably a pretty good entry point. There's a long-term de-dollarization theme that is structural, and I think it will be persistent," said Prior.
For investors watching this space, the underlying driver may be worth keeping in mind: countries accumulating oil income appear to be seeking stores of value outside the U.S. dollar and Treasury market, and that kind of structural capital rotation has historically tended to pause in corrections rather than reverse.
This material contains the author's opinion. It is provided for informational purposes only and should not be regarded as investment advice or a recommendation of specific securities.
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