NEW YORK (Kitco News) - Despite the pullback in gold prices, one market veteran says it is still not time to cash in your gold bets just yet.
Gold prices fell below the key psychological level of $1,250 an ounce on Monday as the metal saw more profit taking pressure. The move comes after recent gains pushed prices to a 13-month high less than two weeks ago. April Comex gold settled $10.01 lower on the day at $1,244.20 an ounce.
Despite consolidation in the gold market, Boris Schlossberg, managing director of FX strategy for BK Asset Management, says he is still a 'big gold bull' this year.
'Gold is getting a huge benefit -- all across the world we are in a negative rate environment. The single biggest knock on gold was that it is an asset that is hard to own, but now it actually costs you money to own cash so gold is really getting a competitive bid because of that,' Schlossberg said in an interview with Kitco News on Monday.
As for buying gold, Schlossberg says he is a 'huge believer' in buying on the dips.
'Everyone thinks gold will come down below $1,200 but at these levels, [I think] $1,225 is as good as it will get,' he said.
He added, 'When investors begin to see they get less money than they put in, they will flock to gold.'
Looking at gold in other currency terms, Schlossberg noted that gold is not only performing well in dollars, but gold against the euro is also a good bet.