Gold has seen an exciting start to 2016, and one popular financial expert believes the metal could go even higher.
"I believe it is a positively trending bull market," said Graham Palm, Executive Vice President and member of the Management Committee of Shizuoka Financial on Monday. He thinks gold could end out the year 15 to 20% above its current value.
Despite the tendency of gold reach "large, round figures" like $1,300 and "back off," Palm said the underlying trend driving higher valuations remains valid, because of central bank strategies.
"I think the world’s financial powers excluding the US, remain in favour of monetary easing," he said.
Monetary easing tends to devalue a nations currency, possibly driving financial a swing to gold as a value of store. Similarly the low interest rates makes gold more enticing, as currencies become a non-yielding resource.
Palm is certain that the bear market in gold is over, despite the fact that it’s down around 33% from its 2011 high.
