It's likely to further appreciate due to a lack of progress in narrowing the deficit, Tentarelli said.
Historically, gold prices have been inversely correlated with real bond yields, meaning when yields decline, gold should rally further.
"Even if there's no rate cuts, I like gold based on the macro of deficit spending," the Merrill Lynch alum said.
In that event, investors will want to hold the SPDR Gold Shares (GLD) ETF, Tentarelli said.
But, for most, the "smartest way" to play gold is through the ETF, Tentarelli said.
Persons:
Larry Tentarelli, Tentarelli, Merrill Lynch
Organizations:
Federal Reserve, Costco, Treasury, @HG, Copper Miners
Locations:
yawning, Freeport, McMoRan, Monday's