"I see a lot of volatility along with other assets in the marketplace," says Brian Hicks, co-manager of the U.S. Global Investors Global Resources Fund, "almost twice of what we normally see on a daily basis." Hicks says that the day-to-day action in gold is difficult to explain as investors will be caught between taking profits and buying protection.
Hicks says that markets are prepping for two scenarios -- one where Germany walks away from the Eurozone, something which Merkel has rejected, or that the European Central Bank will be forced to monetize countries' debt, meaning printing money to pay off debt. That's something even the U.S. hasn't done.
Hicks sees gold prices at $2,000. "It's not if, it's when ... [there are] too many reasons for gold to go up."
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