Jeff Kilburg's Gold Futures Trade

On CNBC's "Futures Outlook," Jeff Kilburg said he is a buyer of gold at its current price level. He thinks investors are doing some major shifts in the allocation of their assets and he thinks gold is going to receive a higher allocation.

Kilburg wants to buy the December gold contract at $1,800 and his target price is at $1,850. He wants to place a stop loss at $1,775. If the price of gold hits his target price, he will make $5,000. In case the price drops and he manages to close the position at the stop loss, he is going to lose $2,500.