What's behind the continued rally of gold and silver. Watch video at left.
Global central bankers managed to tame the stampede to hard assets Thursday by their overnight injection of $180 billion liquidity into the banking system.
But even this massive injection was expected to provide only temporary relief to the fear stalking equities, especially of financials.
“[The price of gold] is all a function of what’s happening in markets not related to gold – it’s confidence in the dollar, its confidence in paper assets, if you can tell me that people are going to continue to lose confidence, that there will be more bank failures, then gold will go to $1,000,” said Allidina.
He declined to say how quickly this could happen noting that “this rally you are seeing is not because of supply and demand fundamentals, this rally is because of fear.”
Zeman said he “would not be surprised” if gold crossed that threshold within 60-90 days, although he expected some violatility with some profit taking along the way.
Both said crude oil prices had far less upside potential in the next few weeks.