For David Morgan, precious metals analyst and publisher of the Morgan Report, stocks are due for a sharp pull-back as investors realize that the economic outlook is not so good. The move and deflationary pressures should also drag down gold temporarily, he said.
"The best solution at some point then wouldn't be found in dollar assets but in gold," Morgan said.
In the interim, he expects gold to fall back further and test support levels at $980 and $970.
