Vincent Ropers

Five reasons why gold can go higher

Gold has been on a tear since the beginning of May, the commodity rising by about 30% over the period. This is a reflection of the market shifting towards expectations of a prolonged global growth slowdown, possibly leading to a recession.

While this move in the precious metal may be extended in the short term, I believe that there are number of good reasons why gold can continue to climb higher.

Why global growth story is not over yet

Dramatic price elasticity is defining a new era of heightened volatility. As spectacular as the fall in markets was late last year, so was the rebound in January. This whipsawing of markets can be very uncomfortable for investors, but for dynamic multi-asset managers it presents allocation opportunities, particularly as gloomy macro-economic conditions weigh on sentiment.