Gold prices rallied 14 percent over the last two weeks as stocks declined — but the precious metal is down for the quarter. But Dan Smith of Standard Chartered told CNBC he's bullish on the commodity.
"We've seen very strong physical demand for gold coins in places like India and Europe," he said. "A lot of the bad news [for commodities] is already priced in."
What about the resurgent U.S. dollar? As of this writing, the dollar is up against the yen and against the euro . But Smith says that's merely temporary:
"The [U.S.] dollar is in a substantial weakening cycle, both for structural reasons and expectations of the bailout" and its effect on the U.S. budget balance sheet, he said.
He expects short-term strength for the greenback -- until "late 2009," when he sees the dollar's decline steepening. Then, expect to see gold over $1,000 per ounce, he predicts.
Click ticker for quote data:
- SPDR Gold Shares
- Market Vectors Gold Miners ETF
- iShares COMEX Gold Trust
Gold Miner Stocks
- Barrick Gold
- Freeport McMoRan
Disclosure information was not available for Smith or his company.