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Will Obama Cause a ‘Super Spike’ in Gold?

Gold bulls are betting on President Obama being re-elected, at least from what recent action in the precious metal is suggesting, OptionMonster.com’s Jon Najarian said Thursday on CNBC.

“I think if the debate goes well for the president, gold goes up,” he said on “Fast Money.”

(Read More: ‘Golden Cross’ May Signal Big Gold Gains Ahead)

Najarian noted that upside call buying could be setting up for a “super spike” in gold leading up to the Oct. 3 face-off between Obama and Republican challenger Mitt Romney.

“Not a lot of action on the put side,” he added.

If, on the other hand, Romney does well in that debate, the action in gold could turn the other way and push the GLD ETF down to $160, he said.

Najarian also noted that gun manufacturers, such as Smith & Wesson and Ruger, could see a bump from Obama’s improved re-election chances.

Earlier, Jeff Kilburg of Kilburg Capital said that a technical analysis shows GLD “staying above the $171 level. On the chart, it certainly seems like the GLD wants to go back up to $180. But if you rewind to last August, September that $1,934 double-top, technically, we’re going there.”

Kilburg said gold purchases would continue, pushing prices upward, possibly even toward the beginning of a bubble.

“We’re going to see gold go above $2,000 (per ounce) before it’s all said and done,” he added.

Trader disclosure: On Sept. 20, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Jon Najarian is long call spreads in AAPL; Jon Najarian is long call spreads in JPM; Jon Najarian is long call spreads in SBUX; Jon Najarian is long call spreads in FB; Jon Najarian is long call spreads in NFLX; Jon Najarian is long call spreads in GLD SHORT STRANGLES; Jon Najarian is long GLUU; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long STSI; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Josh Brown is long AAPL; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Keith McCullough is long GLD.

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