KITCO NEWS - With gold (GLD) - Get SPDR Gold Shares Report prices holding strong gains above $1,300 since Friday's surprise UK vote to leave the European Union, Societe General's head of metals research is now calling for the metal to move much higher from current levels. 'We expect prices to rise to $1,400 an ounce, with follow-through strength extending to the rest of the precious metals' sector,' Robin Bhar told Kitco News Monday. 'The heightened market uncertainty will prompt investors to seek safe-haven assets, benefiting gold and the rest of the precious metals. While, arguably, some of this uncertainty has already been priced in, there is likely much more to come.' Gold is still holding strong and near its near-five percent gains Friday, with August Comex gold futures settling up $2.30 at $1,324.70 an ounce on Monday. The spillover effects of the Brexit vote are also impacting market expectations for U.S. rate hikes. According to CME's FedWatch tool, markets are now pricing in a six percent chance of a rate cut in July.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.