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00:00OF STEAM. HE IS THE HEAD OF RADEL RESEARCH. -- METHYL RESEARCH. YOU RAISED YOUR PRICE FORECAST. WHY IS THE RALLY GOING TO RUN OUT OF STEAM? ROBIN: IT'S BEEN A PERFECT STORM FOR GOLD. IT'S UP 20%. THERE ARE SOME GOOD REASONS WHY INVESTORS HAVE FLOCKED TO GOLD WITH ALL OF THE TURBULENCE IN GLOBAL EQUITY MARKETS AND FEARS ABOUT CHINA AND A HARD LANDING EARLIER IN THE YEAR. CHINA IS DEVALUING ITS CURRENCY. THERE IS A LOT OF FEAR IN THE VARIOUS STREETS. GOLD BENEFITED AS WE SAW SAFE HAVENS INTO GOLD. PEOPLE SEE GOLD AS AN INSURANCE POLICY. WE DON'T KNOW WHAT IS AROUND THE CORNER. ALIX: SOMETHING WE HAVE SEEN OVER THE LAST FEW WEEKS IS A RUSH OF WESTERN INVESTORS. YOU SAY YOU NEED MORE JUICE FROM THOSE WESTERN INVESTORS. WHY DO YOU NOT SEE THAT HOLDING UP? ROBIN: WE ARE VERY SKEPTICAL. IT'S BEEN INCREDIBLY STRONG YOU TODAY. WE'VE ALREADY EXCEEDED PREVIOUS YEARS. IT'S DIFFICULT TO SEE THIS APPETITE CONTINUE. YOU'VE GOT TO BE CONSCIOUS. THE TWO BIGGEST BUYERS ARE SEEING THEIR ECONOMIES SLOW. IT'S DIMINISHING COMPARED TO PREVIOUS YEARS. YOU HAVE TO EXPECT THE U.S. TO GO INTO A SESSION. WE DON'T EXPECT THAT TO HAPPEN. YOU WOULD HAVE TO SEE A COLLAPSE IN ACT THREE MARKETS AROUND THE WORLD. YOU WOULD HAVE TO SEE A CONTINUATION OF THE FEAR TRADE, WHICH IS NOT LIKELY. WE THINK THE ODDS FOR A CONTINUED GOLD RALLY AND NOW AGAINST IT. ALIX: YOU HAVE A 2021 OF FORECAST OF $800 AN OUNCE. SCARLET: THAT'S A STEEP DROP FROM WHERE WE ARE RIGHT NOW. YOU SAID THE RALLY IS NOT BUILT ON A SOLID FOUNDATION. WHAT ARE THE CONDITIONS FOR SUSTAINABLE GOLD MARKETS. ROBIN: FEAR. IF YOU WANT TO BE HOLDING OLD OR WANT TO BE WITH GOLD, YOU SEE IT AS AN INSURANCE POLICY. NO ONE REALLY KNOWS WHAT'S AROUND THE CORNER. YOU'VE REALLY GOT TO SEE CONTINUED FALLS IN GLOBAL EQUITY MARKETS. YOU'RE GOING TO SEE FEAR IN THE FIX MOVING BACK UP AGAIN. WE HAD THAT EARLIER THIS YEAR. YOU NEED TO SEE SOME FURTHER BULLISH CAPITALIST. THAT'S NOT REALLY PRESENT. MARK: THIS IS MY CHART. TO GIVE ME A COMPETITIVE EDGE WITH THIS WONDERFUL CHART, I WILL SHOW A RALLY FOR SILVER OVER GOLD. ROBIN: IT BEGS THE QUESTION. IF YOU'RE ELLIS ABOUT GOLD, I SILVER. IT'S CHEAPER. GOLD HAS UNDERPERFORMED. IF YOU ARE BULLISH, BUY CHEAP SILVER. MARK: THAT CHART SHOULD WIN

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Will the Gold Trade Keep Shining?

Societe Generale head of metals research Robin Bhar reads into the recent gold rally on "Bloomberg Markets." (Source: Bloomberg)

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