While analysts and traders from New York to London bet that gold will go higher, veteran investor Jim Rogers would rather seek haven in the dollar as the UK’s vote to leave the EU roils global markets.
Prices of bullion are due for a drop and will probably be lower at the end of the year from current levels, Mr Rogers said in an interview, adding he would buy the metal again once it declines enough.
That view is at odds with the median of 12 forecasts in a survey that predicts a gain of more than 7% for gold from where it’s trading now.
Gold is being boosted by its role as a refuge, with prices last week posting the biggest increase of any major global asset as the world grappled with the economic impact of the UK’s exit from the EU.
The rally added to what’s already been a stellar 2016 for bullion, with prices up 25% after three years of losses.
“Gold has been staggering this year, went straight up, and I don’t like to buy anything that’s run straight up,” he said.
“I would prefer to buy the dollar as a haven than gold.”
Speculation that the Federal Reserve will keep US interest rates low has boosted demand for the metal as a store of value, while a volatile geopolitical backdrop has increased haven buying.
Meanwhile, George Soros, the billionaire famed for his 1992 wager against the pound, did not repeat the bet ahead of sterling’s record tumble.
Mr Soros was “long” the currency before the UK vote to leave the EU, although he did profit from other investments “because of his generally bearish outlook on world markets,” according to a spokesman.
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