Gold prices eased near $1,336 an ounceon Wednesday as talk of a Chinese rate risepressured commodities. How should you be playing gold right now? Tom O’Brien, editor at The Gold Report, and Will Rhind, strategic director at ETF Securities, shared their outlooks.
“We have seen a top—it’s not the top, but it’s a top,” O’Brien told CNBC.
“It’s been a great acceleration up and going forward, I expect you’re going to see a year and a half of consolidation.”
O’Brien said he expects gold to pull back 25 to 30 percent and prices to return near $1,075 to $1,175 an ounce.
In the meantime, Rhind said he expects more investors to flock to gold as a safe haven.
“When we start hearing European sovereign debt issues resurfacing again, particularly with Ireland and whether they will be bailed out or not, people want a flight to safety and gold has been that place for investors to go in times of turmoil,” he said.
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Scorecard—What They Said:
- O'Brien's Previous Appearance on CNBC (Sept. 17, 2010)
- Rhind's Previous Appearance on CNBC (Nov. 9, 2010)
More Market Intelligence:
- What Is Bullion Market Trying to Tell Us?
- Precious Metals Prices to Rise Further: Trader
- Cramer: Why You Must Own Gold
CNBC Data Pages:
No immediate information was available for O’Brien or Rhind.