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One big reason why gold could be heading to $1500

Gold is in focus after the Federal Reserve released its April meeting minutes. The price of the metal, which shot up more than 20% since January 1st, is under pressure after the central bank noted that a June rate hike would be ‘appropriate’ should economic data continue to improve.

Gold (GCM16.CMX) extended its losses after settling down $2.50 at $1,274.40 an ounce on Wednesday. Prices in electronic trading dropped toward $1,260 shortly after the release of the Fed minutes.

But big players may turn that around.

Anthem Blanchard, founder and CEO of Anthem Vault, told Yahoo Finance’s Seana Smith that he doesn’t expect gold prices to fall much further. In fact, he sees $1,250 as a price floor for gold, and expects the metal to push even higher on the heels of its best rally in three decades.

“$1,500 an ounce is not out of the realm of possibility… Seeing hedge funds come into the market institutionally has been a big catalyst for the price of gold,” said Blanchard.

A volatile market and global growth concerns prompted prominent investors to bet on the precious metal. Filings showed that billionaire George Soros, who sounded the alarm on the global financial markets by saying that China’s debt-fueled economy reminds him of the U.S. in 2007- 2008, has returned to the metal for the first time in years. Other major investors that sought safety in gold were Eaton Park and Bessemer Group.

“It makes a lot of sense in this current environment. There’s a lot of uncertainty with the Fed and I think that plays a big part,” said Blanchard of Soros’ investment in the metal.

And hedge funds are not alone. According to the World Gold Council, demand for gold shot up 21% in the first quarter, second only to the fourth quarter of 2012.