The bull market in gold is structurally intact driven by aggressive central bank purchases and rising geopolitical uncertainty, according to Manish Chokhani, Director of Enam Holdings Ltd.

Though he cautions investors against chasing the metal at its current elevated price points, Chokhani’s outlook suggests that the long-term drivers are robust. While he suggests that gold is due for a consolidation phase, the precious metal’s role as a safe haven is stronger than ever.

Chokhani advised immediate caution, stating he would “not recommend gold now.” This stems from the fact that the yellow metal is now trading above the $4,000 levels globally. The expert calls this a temporary peak or prices before the prices start to consolidate. Despite this, he confirmed the long-term bullish view.

“Gold will consolidate but central banks are buying gold and silver like there’s no tomorrow,” Chokani noted. This fervent buying by central banks which are diversifying reserves away from currencies, and into these precious metals have pushed the prices into a record run. Gold used to be the standard, he noted emphasising the strategic and historical importance of the metal given the current geo-political landscape.