Goldman: Gold is a 'hedge against politicians'

Jeff Currie, head of commodities research at Goldman Sachs, attributes part of the 20 percent rally in gold this year to uncertainty over the coming U.S. election.

"We have a lot of political risk in the market right now, so gold has a strategic purpose," said Currie, explaining that investors often gravitate toward hard assets in times of uncertainty. "Gold is a hedge against politicians."

In this in-depth conversation, Currie also discusses why Goldman reduced its 2016 year-end oil forecast by 14 percent to $43 from $50 a barrel, as well as the one commodity he thinks is a buying opportunity right now.

To watch the full broadcast interview, which originally aired on "Power Lunch," you must be a CNBC PRO subscriber.