NEW YORK (Kitco News) - Gold is up, then down, then up again. But, investment demand hasn't waned.
After racking in $7 billion inflows last quarter, holdings in the world's largest gold ETF - SPDR Gold Shares (NYSE: GLD) - continue to rise. Likewise, the price of the metal should also move higher, this according to George Milling-Stanley, head of gold investment for State Street Global Advisors, the marketing agent behind GLD.
'My guess is that we're probably going to see the more speculative money coming in,' he told Kitco News Wednesday, adding that prices are likely to move up to $1,350 an ounce by year end.
However, a cause for concern to gold investors has been the extreme positioning in the market, which could call for a corrective pullbacks.
But, Milling-Stanley is not too worried and noted that any corrections in gold prices are simply a 'pause for breath.'
'I personally wouldn't take the risk of waiting for further dips, gold has some momentum behind it,' he said. 'I think that the price is very open to the upside and seeing very good downside support.'
June Comex futures settled the day at 1,275.5 an ounce, up almost 1% up on the day. .
Milling-Stanley also chimed in on how U.S. politics and uncertainty abroad may have positive effects on the gold market.
'As long as you include the unconventional political season in this country, the potential of a Brexit...I think that is part of the support for gold,' he said. 'If you add in negative interest rates, which in my mind looked like a desperation move on the part of central bankers, that just adds to the general atmosphere of uncertainty and adds to the appeal of gold.'
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.