"Once investors see that it is not the case, we will see optimism collapse," he said.
Several analysts have also weighed in on the positive catalysts for the precious metal this year.
"The euro zone has plenty of crisis triggers over coming months. Indian and Chinese buying remain strong and Trump's policy threatens inflation," said Adrian Day, president of Adrian Day Asset Management in Annapolis, Md., which oversees $190 million.
"All this is positive for gold," he said.
UBS strategist Joni Teves expects gold to also hit the $1,400 mark this year.
"An environment of low and negative rates narrows the gap between holding gold vs other assets, making having gold in a portfolio an attractive proposition amid heightened global macro uncertainty," she wrote in a research note.
Analysts at Credit Suisse have also taken a bullish stance on gold.
"Following a 2016 gold market surplus, we forecast 2017 is a swing to deficit as we expect increased trade protectionism, currency devaluations [such as RMB] and geopolitical uncertainty [2017 elections across Europe are potential catalysts] to boost bar and coin demand, Central Banks to continue buying and mine supply to decline," the firm said.
Time and again, gold has been the go-to asset in times of economic and political turmoil. With Trump's economic policies largely unknown, gold could act as a form of wealth insurance during a time of considerable uncertainty.