Charts: Gold to Hit $1,040 'Very Quickly'; S&P to Weaken

Gold's "breaking out" to a higher level as imminent, Chris Locke, managing director at Oystertrade.com Management, told CNBC Wednesday, as other analysts have said the precious metal could shine again as inflation fears resurface.

"We're on this point of the market making a substantial move to the upside," Locke said.

"We will see the market move through the bull market highs of $1,040 very, very quickly," he added.

The S&P 500 index has maintained its uptrend from the March lows and the next target for it is 1,050, Locke said. But for the fall period, Locke sees the index weakening.

Locke told CNBC he's been looking for a signal that the U.S. index will peak in August before correcting slightly, but that signal hasn't occurred yet.

But he said he's "seeing some kind of loss of momentum to the upside" and therefore predicted that the September to November period "will be weaker" and will test the levels below 950.

He also sees sterling reaching "levels towards parity" against the euro, at 95 cents. "Sterling looks the most vulnerable to me," he said.

Contact Europe News


    Get the best of CNBC in your inbox

    › Learn More

Europe Video

  • Harriot Pleydell-Bouverie, founder of Mallow and Marsh, explains how her business grew from making marshmallows in her kitchen to a recent deal with supermarket chain Sainsbury's.

  • Jeffery Rothfeder, author of "Driving Honda", says that Honda's strategy of setting up localized operations in every market it goes into means the group gets the best margins in the auto industry.

  • Ian Cheshire, Kingfisher's chief executive, discusses the French business environment and says that he agrees with the French prime minister's call for monetary policy easing from the ECB.