Jerome Powell's hawkishness at last week's Jackson Hole Symposium created doubts in gold investors' minds, sending the yellow metal to trade sideways for the last few days.
Volatility for gold presents an opportunity to buy on the dips, said Frank Holmes, CEO of U.S. Global Investors who said that "if you're not long, you're wrong."
Holmes has previously called for gold to hit $4,000 an ounce in two to three years' time. His long-term forecast is based on applying gold's performance during the last time the Fed expanded its balance sheet between 2009 to 2011.
Frank Holmes is the CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors.