The remainder of the year will prove very bullish for the gold and silver markets, said the managing director of the Astrologer's Fund on Thursday, as he predicted that both metals will surpass recent highs before the year's end.

Noting that an astrological change has been made in the markets since April, Managing Director Henry Weingarten said the precious metals markets are operating as he had previously believed but are not in sync due to the emergence of new players.

With strong months ahead for the metals, Weingarten is predicting silver prices well above the $14-an-ounce mark and possibly heading toward $16.70. Weingarten said gold could reach around the $870- to $890-an-ounce mark by the end of 2006.

In his advice to his investors, Weingarten – a self-proclaimed market astrologer – said to hold gold until it hits $800 or until 2008, whichever comes first.

Until that time, he has calculated that the current fair value for gold is $661 an ounce, which takes into account four separate scenarios where gold could reach certain levels.

"As a commodity, its fair value is seen at $580, as a currency its fair value as of September is $640, as a measure of inflation its value is seen at $690 and as a crisis metal it's between $734 and $800," said Weingarten.

Although Weingarten sees gold reaching levels seen in 1980 again this year, he did warn that into 2007, the U.S. will likely move into a recession that will be bearish for the metals markets. But in 2008, he noted, metals will rise again.

"We will see a real-estate recession in 2007 with negative growth, so 2007 will be similar to 1989 as the astrology is the same in terms of the Saturn and Neptune aspects," said Weingarten.

In his forecast, he even touched upon the horoscope of Federal Reserve Chairman Ben Bernanke, who Weingarten said will make a change in his interest rate moves in September.

"He will either pause or move in another direction," said Weingarten, referring to moves in interest rates. "We will probably see one more quarter-point rise (in interest rates by the Fed) but the last time (the Fed) will do it will be in August."

For the third quarter of 2006, Weingarten said the Dow Jones Industrial Average will be at 10,000 and the Nasdaq will be at 2,000 due to uncertainty in the markets as Mars appears in the face of violence.

"So be on the short side until September," Weingarten said.