Go for gold in the medium term?

Financial Journalist
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Gold bugs have been in full voice as renewed volatility in global equities sparks calls that gold bullion is a new bull market. I would not chase precious metals higher at these prices, even though I am bullish on the Australian-dollar gold price in the medium term.

Gold has rallied from about US$1082 an ounce in January to US$1,271. It briefly cracked US$1,310 last week as fears about Britain’s possible exit from the European Union intensified and as concerns about the strength of US economic recovery intensified.

Chart 1: US$ Gold

Source: Kitco

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