Gold bugs have remained defiantly optimistic despite a sudden fall in its price this week, but one fund manager has told CNBC that only a fresh macroeconomic sea-change could push investors back into buying the precious metal.
"Typically the money is made when you buy something that is out of favor, and gold is certainly out of favor...what we have to look for is a different perception of macro events." John Hathaway, a portfolio manager at New York-based Tocqueville Gold Fund told CNBC.
"It's very interesting and very opportune for investors to not write it off but to consider investing...we live in a world of substantially higher systematic risk than we had even five years ago during the financial crisis."
Hathaway added that said that one such event could be a turnaround in policy by the U.S. Federal Reserve, which is currently reining in the massive bond-buying program it started after the financial crisis. The original $80 billion-a-month program has already been "tapered" back to $45 billion.
"Another reasonable possibility (is)...that the Fed is going to discover that they have to taper the taper. The U.S. economy is quite anemic, there's very little evidence that there's any sort of building momentum. And it seems to me there's a good chance that they may have to reverse their course on this so-called experimented tapering," he told CNBC Thursday.