“Gold is relatively cheap, so when you’re trying to think about that positioning, gold is definitely one that still has catch-up potential,” the strategist said, as quoted by CNBC.

He added that “gold had a phenomenal run-up over the course of last year, and when that reversed, I think it scared a few investors off.”

Last August, spot gold price reached a record high of $2,063 per troy ounce. The current price of the precious metal stands around $1,887.

A sharp jump in US Treasury yields, along with an anticipated interest-rate hike, put gold bullion under pressure in the first few months of 2021.

According to the analyst, the dollar and other major currencies like the euro were now looking “rich” on a relative basis, suggesting a possible dip against the price of gold.

He added that even if gold were to reach $1,900, “or even above, that’s still an area that does have scope given what we’re seeing with policy rates, given what we’re seeing with inflation dynamics and just overall under-positioning on that side of things. That’s certainly a catch-up trade that can have more legs.”