Gold could see a rally of around 5 percent before year end, according to one strategist, bringing a respite for the precious metal which has fallen 25 percent year to date and is on course for its worst year since 1981.
Andrew Su, CEO of Compass Global Markets, said gold prices will rise 5 percent in the next few weeks leading up to the end of the year, from Wednesday's trading level of $1,257 per ounce.
"We have an end-of-year target of $1,320 for gold and a medium-term target of $1,450... I think $1,350 is a relatively modest target for the end of the year," he said.
(Read more: As funds get massively short, gold could spike)
Su said a number of factors are driving his more bullish sentiment. Firstly, as a contrarian investor the fact that so many analysts have turned bearish on the yellow metal is, for him, a clear signal to buy.
"When the market becomes overly bearish as it did yesterday, [we see it] as an indication to buy. There was a lot of news yesterday that hedge funds had increased their shorts to the highest level in five years and we took this opportunity to go long," he added.