Gold's Correction Is a Buying Opportunity, Says Ninepoint Partners

Wachowiak views the current volatility as a healthy flush of speculative positions rather than a fundamental shift. While markets remain fixated on Federal Reserve policy and currency fluctuations, she argues that structural drivers—such as geopolitical instability, mounting U.S. debt, and sustained central bank reserve accumulation—remain firmly in place. The metal’s ability to hold above the $4,000 mark during recent dips signals significant physical buyer interest, with central banks on track to purchase roughly 1,000 tonnes this year.

The disconnect between gold's price and mining equity valuations has created a rare entry point for investors. Despite rising energy costs, gold producers are currently operating in a historically strong financial environment, generating roughly $3,000 an ounce in sustaining cost margins. With many mining stocks trading at roughly eight times EV/EBITDA, Wachowiak describes current valuations as bargain-basement levels. She expects that as the market moves past its current obsession with short-term economic data, the focus will shift back to the sustained profitability and disciplined capital management currently defining the gold sector.