Gold is likely to reach $1,900 per ounce by October of this year

Gold is likely to reach $1,900 per ounce by October of this year, according to John Taylor, the founder, Chairman, and CEO of FX Concepts LLC.

Taylor, whose firm runs $8 billion, provided his latest outlook on the markets and economy in an interview with Bloomberg.

At tomorrow’s European summit on Greece, Taylor predicted that government officials “are going to kick the can further down the road,” rather than deal with the structural problems facing the euro zone.

As a result, Taylor predicted the start of another “risk rally” in financial markets, which may send the yellow metal to $1,900 per ounce by October.

However, following the rally, Taylor forecasted that the U.S. economy will enter a recession in 2012 that is more severe than that of 2008. “I’ll hang my hat on it,” he continued. ”It’s descending upon us already. Next year’s going to look worse.”

Once the recession hits, Taylor predicted the price of gold will tumble to $1,100 per ounce amid broad-based liquidation and strength in the U.S. dollar. As for the euro currency, he contended that a “conservative” estimate would place it at 1.15 against the dollar next year. Moreover, Taylor said that the euro has the potential to trade at parity against the U.S. dollar.