The three-year gold bull market isn’t over

AFTER hitting all-time highs of US$3,500 per ounce in April, gold has traded sideways not only in US dollar terms, but also across major currency pairs.

Despite this lack of progress for nearly four months, the leading precious metal has still delivered 29 per cent year-to-date returns – still outpacing the 11 per cent returns from global equities and the 7 per cent returns in global bonds by a wide margin.

Investors should not be concerned about this summer pause and instead view it as an opportunity. Recall, this pause in the three-year gold bull market is not its first. The first came after a 28 per cent rally in gold from its late-2022 low, as the US Federal Reserve entered the final days of its rate-hiking cycle while inflationary pressures began to recede.