Gold Will 'Battle' to Cross $1,000: Analyst
Gold prices have skyrocketed recently, edging closer to the $1,000 mark. Damon Vickers, hedge fund manager at Nine Points Capital Partners, and Tom Pawlicki, precious metals analyst at MF Global, spoke with CNBC about whether they think the metal will cross the threshold into four figures.
Vikers said the price of gold will be determined by what happens at the meeting of the G20 finance ministers, and that it could rise another $100 if they don't develop a viable exit strategy.
As the metal approaches the $1,000 level, he said, a battle will ensue between the bulls and bears. "The technicals are in place, for at least for a challenge," said Vickers. "Whether or not we're going to succeed and break through it is yet to be seen."
Coeur D Alene
Palicki referred to gold as a safety play, and said it could touch $1,100 later this year or early next year.
"If you have to look at it from a fundamental standpoint, certainly we can see some flows coming into the market based on the excessive spending from the government," he said. "Also there's uncertainty as to whether or not the stock market can continue to gain, especially with the negative September seasonal that comes in."
Pawlicki said that worries over inflation and the banking sector have also inflated gold's price.
Disclosure information was not available for Vickers, Pawlicki or their companies.