Paulson & Co. CEO predicts further gold rally amid global tensions

The gold rally shows no sign of stopping. On Tuesday, the price of the precious metal hit a new all-time high, briefly exceeding $3,500 per ounce. John Paulson, founder of Paulson & Co., believes that the asset's value will continue to climb higher amid ongoing geopolitical and economic instability. He expects both retail investors and central banks to be interested in gold. Bloomberg shares the billionaire's view on the matter.

Paulson is confident in a further rise in gold prices. However, the pace and magnitude of the rise hinge on developments in the current tense climate. For instance, the recent surge in gold was triggered by the US President’s harsh comments on monetary policy easing and his threat to dismiss Fed Chair Jerome Powell. The more the situation escalates, the higher gold prices will go, Paulson says.

The Head of Paulson & Co. has been investing in this safe-haven asset and companies, which produce the precious metal, for a long time. On Tuesday, he teamed up with Novagold Resources Inc. to acquire Barrick Gold Corp.’s 50% stake in an Alaskan gold project.