Australian hedge fund manager Raphael Lamm sees the recent decline in gold as temporary, Bloomberg reported Thursday, citing an interview with the L1 Gold Fund co-manager.

Lamm told Bloomberg that unsustainable fiscal conditions in major markets, including US government debt above $40 trillion, plus growing central-bank gold buying, will support bullion over the medium to long term.

Gold has fallen about 16% since the US-Iran war began in late February and traded at $4,286.01 an ounce Thursday evening in Sydney, Bloomberg reported.

Lamm's A$1.5 billion fund, which pairs long gold-equity positions with a hedge in gold futures, returned a net 235% through August since its February 2025 launch, a fund spokesperson told Bloomberg, versus a roughly 148% gain for the VanEck Gold Miners ETF and a 55% rise in physical gold over the same period.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)