Gold Prices Could Hit $1,500

NEW YORK (TheStreet) -- $1,500 gold prices are in the cards by "early next spring", one top strategist predicts.

Despite a shortened trading week and options expirations, gold prices continue their record breaking bull run. "Traditionally going into options expiry gold is generally under considerable pressure to the downside", says John Embry, Chief Investment Strategist of Sprott Asset Management LP. "[But]....there is considerable strength in the gold market and its persisting today....it could have a correction at any time but I think the correction would be short lived and fairly shallow."

Gold prices reached another high Monday of $1,171 an ounce, but then pulled back settling at $1,164.80. Gold delivery for December was rising $1.10 to $1,165.80 at the Comex division of the New York Mercantile Exchange. The contract has traded as high as $1,171.70 and as low as $1,157.70.

The precious metal continues to trade in opposition to the U.S. dollar as traders invest in gold as an alternative asset. The U.S. dollar index was slipping slightly to $75.12.

Silver prices slipping 16 cents to $18.44 while copper was down 1 cent to $3.12.

Reportedly HSBC is asking its smaller retail investors to remove gold from their vaults and store it elsewhere to make room for bigger tonnage from more profitable institutional investors. Some analysts take this as a sign that a top is forming in gold. But Embry disagrees, "[Gold] is still undervalued...if you look at the earning statements of large gold companies, they're not making hardly any money.... If gold were in a bubble, these guys would be making a fortune."