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Gold Still Has Upside Potential: Commodities Analyst

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)

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Top Gold Miners:

Barrick Gold

AngloGold Ashanti

Newmont Mining

Gold Fields

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Disclosures:

No immediate information was available for Steel or his firm.

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