PvE's model for the price of gold is based on his model for the number of 'spendable' dollars in circulation, which he calls the Actual Money Supply:

http://www.paulvaneeden.com/Actual.M...

Last year, he was saying fair value for gold was ~$700. This year he's saying it is ~$850. Notice that it is going up. Notice also, that this 'value' he is assigning it is based on the amount of currency that is in circulation at any given time, and not based on where he sees the AMS going.

He was very clear during the interview that he thought inflation would be increasing. From there, it is easy to put 2 and 2 together and see where he thinks the price of gold is headed.