Amid uncertainty in the U.S. and risk aversion in global markets, gold's performance as a traditional safe-haven has proved lackluster. Yet one strategist reckons the precious metal could rally as much as 20 percent in the next one to three months.
Sean Hyman, editor of the Ultimate Wealth Report, a financial newsletter, says the reason for the bullish call is partly based on a view that under Janet Yellen the Federal Reserve is likely to maintain its hefty monetary stimulus, fueling inflation and boosting demand for gold as an inflation hedge.
U.S. President Barack Obama on Wednesday nominated Yellen, the Fed's Vice Chairman, to replace Ben Bernanke when he steps down as Fed chief in January.
"Gold is having a traditional pull-back and I think we will have another run up to the $1,500, $1,600 level in the next one or two or three months," Hyman told CNBC Asia's "Squawk Box" on Thursday.
A move to $1,600 would imply a gain of almost 23 percent from current levels around $1,302 per ounce.
Gold has been stuck in a narrow range roughly between $1,280 and $1,320 since a budget impasse in Washington triggered a partial shutdown of the government on October 1. It is down about 22 percent in the year-to-date.