After accurately predicting the market peak, the Fidelity fund manager plans to go long on the rebound. He sees a buying opportunity in the pullback of gold prices.

George Efstathopoulos, portfolio manager at Fidelity International, sold most of his gold holdings in the days leading up to the biggest drop in gold prices in forty years. Now, he is preparing to buy back in. George said, "If gold prices drop another 5% to 7%, I will buy heavily. Many bubbles have already been squeezed out of the market due to this decline, and the structural and long-term logic supporting gold's continued strength remains very solid." George manages about $3 billion in income and growth strategy funds at Fidelity. He believes the factors that drove gold prices to record levels are still present: "Inflation continues to be sticky, and a weakening dollar provides additional momentum." George's funds had a return of 20% last year. He mainly obtains exposure to gold through ETFs, ETCs, and gold mining stocks. He plans to increase the proportion of gold in the fund to around 5% and emphasizes, "We want to buy on dips, because from a diversification perspective, gold can make the portfolio more robust."