Gold prices could double in next 3-5 years, says fund manager

Gold took a tumble after the Fed's hawkish shift in June, when officials sped up their timetable for policy tightening and said they would start discussing scaling back bond buying.

Gold is primed to surge to fresh highs as the risks around central banks unwinding massive stimulus are under-appreciated by investors, said a fund manager who forecast the metal’s ascent to a record last year.

Diego Parrilla, who manages the $250 million Quadriga Igneo fund, said there isn’t widespread awareness of the long-term damage that’s been caused by ultra-loose monetary and fiscal policies. Artificially low interest rates have created asset bubbles that are too big to burst, which will make it very difficult for central banks to normalize without risking their collapse, he said.

“The tapering process will be glacial in terms