Precious metals back in favor as volatility rises

In the recent round of market turmoil, the price of gold price has struggled to shrug off its correlation with the U.S. dollar, but as bond and equity volatility persist, investors' are eyeing up its safe-haven potential once again

While gold's upside has so far been capped by the gains seen in the U.S. Dollar -- a stronger greenback tends to push bullion prices down -- the outlook for the rest of year is positive, according to analysts.

"It would be wrong to conclude that the outlook for the gold market over the remainder of 2015 and beyond depends solely on the evolution of U.S. monetary policy, and that Fed tightening can only mean lower prices," said head of commodities research at Capital economics, Julian Jessop.

Silver saw sharp gains in May and was the best performing precious metal last month, with silver net longs jumping by 138 percent in May according to Capital Economics, as Chinese demand for the metal has remained robust.

Silver is currently trading under $16 per ounce, down from last month's highs, but Arnold sees it hitting around $18.50 by the end of the year.