CNBC ASIA |
Gold Can Hit $1,500
Go long on gold as prices can rise to $1,300-1,500 over the next 6-12 months, said Scott Redler, chief strategic officer at T3Live.com.
Last December, the sharp jump in spot gold prices from $850 to $1,000 was the safe-haven play, Redler told CNBC. Since then, gold prices have consolidated in the upper-end of the range from $900 to about $970.
"In order for gold to really blast off and have the commodity-type parabolic move, it needs to turn into the inflation trade. With the world markets recovering and all the money that's been pumped into the system, people are starting to smell inflation."
And when inflation really kicks in, that could yield a move in gold to probably $1,300 to $1,500 an ounce over the next 6-12 months, said Redler. Keep your eyes on gold prices because if we blast through a $1,000 an ounce next week, there is a cycle in the precious metal that kicks in on September 9th which could result in another sharp price jump, according to Redler.
"We think the first breakout move will be a potent one and will definitely reward investors or traders that are ready and at that particular point. I think over time, gold will get to $1,300, $1,400, $1,500 an ounce. But that breakout trade is going to be very exciting and you need to be prepared for it."
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