Gold Will Spend Most of 2012 Above $2,000: Trader
Despite the recent robust gains in gold prices, expect the rally to continue well into 2012, said Paul Sacks, principal gold trader at Aurum Options Strategies.
“The easy thing to say is that a selloff’s coming, but I don’t see it,” Sacks told CNBC, adding that he expects the precious metal to “go a lot higher” into the fourth quarter and into next year.
“Gold will spend most of next year over $2,000 an ounce,” he said.
Investors have been flocking to gold as a safe-haven play, amid global uncertainties and worries over a possible recession in the U.S. The precious metal reached another record highearlier Monday,near $1,900 an ounce. Gold prices have rallied about 17 percent this month, and more than 50 percent year-over-year.
Sacks advised investors to take positions in gold options and spreads, which will provide protection if gold happens to see a violent correction.
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No immediate information was available for Sacks or his firm.