Warren Gilman, chairman and CEO of CEF Holdings, the told CNBC's "Squawk Box" that he thought gold had seen its highs for 2016. CEF is a Hong Kong-based investment firm owned by billionaire Li Ka-shing's Chueng Kong Holdings and Canadian Imperial Bank of Commerce.
"Gold still has a problem with the concept of rising interest rates," Gilman said. "You see it every time; you have a deferral of this decision and gold has this wonderful relief rally, but [it will come off]."
Spot gold prices hit a two-week high of $1,336.8 an ounce after the Fed said on Wednesday that it would keep rates steady, and traded around $1,333 an ounce in early Asian trade.
"If we're looking at points of entry, times to make additional investment, I think right now, gold has probably gotten a little bit ahead of itself," Gilman said.
While he said he was optimistic about the long-term prospects for gold prices, the fact the Fed was likely to next raise interest rates in December 2016 would be a near-term negative for the yellow metal.
Higher interest rates will dampen gold prices as the precious metal doesn't offer a yield but incurs an opportunity cost to the investor for holding it. A rise in interest rates will also boost the dollar, which gold is traded in globally, making it more expensive for investors outside the U.S. to buy the metal.
But gold investors needed to remember that, despite this effect, interest rates overall would remain relatively low in the medium term, and thus still providing support for gold prices, Gilman advised.
"Gold has to get out of this morass of celebrating the deferral of interest rate rises. The fact of the matter is, it's coming, it's going to happen ... Gold has to give the finger to rising interest rates and say 'you know what, I don't care, I'm going to go up anyway'," he said.