For many these days, it's now 'in gold we trust'

Yellen should acknowledge 'serious credit contraction': Pro
Yellen should acknowledge 'serious credit contraction': Pro

With the meltdown in stocks sending investors scurrying to safety in gold, JPMorgan Asset Management's Robert Michele said Thursday it's a matter of faith in the metal, or the lack thereof in other assets.

"Gold at $1,200 an ounce, what does that tell you?" he asked rhetorically in a CNBC "Squawk Box" interview. "It tells you that in a flight to quality and a safe haven, people have more confidence in gold than in bank deposits or paper money. I think things have gotten out of control."

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In early trading, gold prices surged nearly 4 percent to around $1,241 per ounce, its highest level in a year.

Gold was also supported by a lower dollar, which makes the metal cheaper for holders of other currencies. The dollar was under heavy pressured early Thursday against the Japanese yen, which rose to 15 month highs.

Michele serves as global CIO and global head of the fixed income, currency and commodities group. Overall, JPMorgan Asset Management has $1.7 trillion in assets under management.

— Reuters contributed to this article.