Investors should own gold as a bet on global liquidity, FX Concepts Chairman John Taylor said Tuesday.
"I believe very much that you should own gold right now," he said. "Basically, there were two targets for gold on the downside in that quantitative technical game sense. One was 1,400. The other was 1,250."
On CNBC's "Fast Money," Taylor noted that the 1,400 level for gold was held. "And now we're headed up."
Taylor also said that either the bottom in gold prices was a big one or at the very minimum it was a bottom for the next six to eight weeks, "which is good for 1,500, anyway."
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Taylor called the recent gold selloff as getting "a little out of hand" and said he was still positive on the precious metal.
"I look at it as a leader and a lagger," he said. "It's a perfect liquidity trade. It tells you what's going on with liquidity, and liquidity has gotten tighter, not looser."
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Taylor challenged the idea that gold was now a bearish haven.
"I don't think anymore you have to be bearish on the dollar for gold. I think you have to be bearish on the world economy," he said. "And the fact of the matter is what you're bearish is not on the economy, but you're becoming bullish on the fact that they're going to step on the gas and they're going to go out the other side and there's going to be a lot of liquidity. And gold leads that by a lot."