Gold prices have surged almost 25 percent this year—hovering around $1,100 an ounce. Will gold's bull run continue in 2010? Jim Steel, chief commodities analyst at HSBC, shared his insight.
Gold "still has upside potential, but the market’s likely to trade in a wide and volatile range this year so you’ve got to be judicious at where you choose to come in,” Steel told CNBC.
“I wouldn’t be surprised to see it between $950 and $1,300.”
Steel said people are attracted to gold because it acts as a “super-national” currency.
“Gold has both an investment and a physical component and some of the things that have been preventing gold from going higher has been the fact that jewelry sales have been down significantly,” he said.
“We’ve also had less producers coming in and buying back…Those are two positives in the market that are going to be removed.”
- Watch Steel's Previous Appearance on CNBC (Sept. 18, 2009)
More Market Views:
- 'Fast Money' Traders on 2010 Commodities
- '871 Billion' Reasons to Buy Gold
- Stocks, Dollar, Buffett & Tiger: Kass' 20 Predictions for 2010
CNBC Data Pages:
Top Gold Miners:
No immediate information was available for Steel or his firm.