Gold’s ~31% Pullback Echoes 2008 Correction Amid Stronger Macro Backdrop, Commentary Says

Gold’s current pullback of roughly 31% closely resembles its ~34% correction in 2008—a downturn that did not end the bull market, as prices subsequently surged another 170%, according to market commentary.
Today’s macroeconomic backdrop is viewed as even more supportive for bullion. Unlike previous cycles when central banks were net sellers, global central banks are now net buyers of gold for the first time.
At the same time, elevated inflation is colliding with heavy sovereign debt loads. Unlike 1980, when policymakers could aggressively raise interest rates to crush inflation, current fiscal constraints favor letting inflation run hot to erode debt burdens and bring debt-to-GDP ratios back toward more manageable levels.
Against that backdrop, the commentary concluded that investors remain underallocated to gold for what lies ahead.