Gold rally could be similar to 1980: Trader

20-Aug (CNBC) — Prices of Gold continued to rally Thursday, rising more than 1 percent to a four-week high as uncertainty over a possible Fed rate hike had investors piling into the safe haven asset. The precious metal is now up more than 6 percent from the recent low hit in late July and some traders think now could be its time to shine.

…”This is one of the first times in a while that we’ve seen options traders bet on a rebound,” Mike Khouw, a CNBC contributor, said Wednesday on CNBC’s “Fast Money.”

…”We don’t quite know how this will end,” added Khouw. “But if gold’s bear market is similar to the one in the early 1980s, it may still be marked by some significant rebounds.”

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