Greg Jensen, co-chief investment officer of Bridgewater Associates, the world’s biggest hedge fund, says gold could surge to a record high above $2,000 an ounce as central banks embrace higher inflation and political uncertainties increase.
Mr Jensen, who helps oversee more than $160bn at the Connecticut-based group, told the Financial Times he believed the Federal Reserve, in particular, would let inflation run hot for a while and “there will no longer be an attempt by any of the developed world’s major central banks to normalise interest rates. That’s a big deal”.
At the same time, Bridgewater sees political turbulence on multiple fronts as slowing US economic growth exacerbates the divide between rich and poor while tensions rise with China and Iran.