Senior economist at Longview Economics, Harry Colvin, said gold will rally from $300 to $400 an ounce in 2013 whether inflation comes or not.
Colvin said this in an interview on CNBC:
Everyone is always bearish at the lows, that's the time to buy it, we're going to get a good rally this year I think.
When challenged on there not being much in the way of inflation by Bob Parker, senior advisor at Credit Suisse, Colvin responded with this:
We don't need inflation for a gold price rally. We haven't had inflationary pressures in recent years. The only inflationary pressures we have is from QE pushing commodity prices up.
Gold's gone sideways for sixteen months, that's because the balance sheet in the Fed has gone sideways for the last sixteen months. The balance sheet is about to expand rapidly. And with that we're going to get a rally in the gold price, it's going to go hard this year and probably into the next.
If he's correct, we'll see gold approaching the $2,000 an ounce mark this year.