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The recent gold rally is counterintuitive, as high interest rates typically make bullion less attractive.
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But billionaire investor David Einhorn has a theory that he shared in his latest investor letter.
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Einhorn suggests that gold’s rally is potentially due to countries in the East buying gold from Western nations.
Gold has had a record-setting year so far in 2024.
That being said, the commodity’s sudden surge may come as a surprise. That’s because the macro environment was supposed to create headwinds to gold’s price appreciation, as the Federal Reserve’s higher-for-longer interest rate stance typically makes other investments like bonds and saving accounts more appealing compared to the metal, as it’s not a yield-bearing asset.
To explain the strong run for gold, billionaire investor David Einhorn offered a potential theory in his…
