Analysts expect gold to achieve $1,500 level by 2010

 After gold prices hit $1,100 an ounce on Wednesday analysts started speculating about further increases. Patrick Chidley, senior mining analyst at Barnard Jacobs Mellet, and Jonathan Kleisner, principle and managing director of investment strategies at REX Capital Group, shared their views with the CNBC.

Kleisner admitted that he plans to invest into dollar futures along with adding onto gold positions. According to his expectations gold prices will reach as much as $1,500 an ounce by June of 2010.

“You’ve got to look at this as a real breakout commodity," he said. 

“So you look to buy the dips and if you’re initiating a gold position, you have to think about buying some dollar index futures as well.” 

Chidley said that while gold prices could dip slightly, gold stocks are not really pricing in the current price at $1,100 an ounce. 

“I’m keen on some of the gold stocks—there’s good leverage in these stocks,” he said. “We estimate 3 percent for every 1 percent move in gold price itself.” 

In Chidley’s view the gold bullion is a more conservative way of getting exposure to the commodity. 

“Buying stocks comes with additional risk, but with the leverage that you get and also as gold prices go up, the address of a market of those gold companies, in terms of what they can do with their assets, improve as well,” he said. “So things get better for them.”