KITCO NEWS - Gold is in a strong bull market, and it's only going to get better, this according to Barry Dawes, executive chairman of Australian-based investment firm Martin Place Securities. But, unlike the doomsayers, Dawes is calling for a global economic boom and thinks gold stands to gain. 'This is a powerful bull market in gold,' says Dawes, noting that even more powerful forces are at work that will change the global allocation of capital. 'The world has never been as wealthy and the wealth is no longer a U.S. or Europe dominated force. China, India and South East Asia are now wealthy blocs with over 3,300 million people,' he said. In an interview with Kitco News, Dawes said he is calling for $1,500 an ounce gold by year end. 'The strength in the gold market has been displayed since the lows in January 2016 and long before Brexit became a market issue. Markets respond to the major long-term issues and tend not to be reversed over short-term matters,' he said. On Friday, gold prices were under pressure after much-stronger-than-expected U.S. employment report that likely puts a Federal Reserve interest rate hike this year back on the table. December Comex gold was last down $12.50 an ounce at $1,355.60. September Comex silver was last down $0.393 at $20.05 an ounce.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.