UBS: Joni Teves: Gold rally just getting warmed up

It’s been a stellar six months for gold investors. The yellow metal has surged 28 percent year-to-date, its best first half of the year since 1974. And according to UBS the gold the rally is just getting started.

According to UBS analyst Joni Teves, gold could climb to $1,400 an ounce in the short term on macroeconomic uncertainty, dovish monetary policy and lower yields. Taves adds that these factors justify strategic gold allocations.

Already-low bond yields around the globe have fallen even further, which may support gold in a way that was believed to cause negative effect on the precious metal.

About $10 trillion worth of global government debt now carries historically low or negative yields, which is creating negative growth in the world economy, according to billionaire "bond king" Bill Gross.

Joining UBS in forecasting further gains is Credit Suisse, which sees gold reaching $1,500 by as early as the start of next year due to the unexpected result of Brexit.

Credit Suisse belive The appreciation in bullion is helping to push up gold mining companies.

Read more:

• Oil fundamental and inertia can push prices to new highs
• Goldman Sachs: “Gold is a better hedge than oil in current market conditions”
• Golden years for Gold
• The end-of-year gold rally continues at full speed
• Gold goes over $ 1,500, big players with estimates for the next year