Will 'Brexit' drive a new bull market in gold?

The UK's decision to vote in favor of leaving the European Union in a nationwide referendum on June 23 has already boosted the prices of precious metals. The prospects for both gold and silver over the coming years are bright. Nonetheless, Brexit alone may not be the game changer for the gold market that many anticipate.

The Brexit vote has led to a significant increase in economic and political uncertainty in the UK, with business confidence down and the prime minister on his way out. What's more, there are early signs of contagion to the rest of Europe. Populist parties in a number of other EU countries are already calling for referendums of their own.

Given this, it is not surprising that the price of gold has performed strongly since the referendum, reflecting both its traditional role as a global safe haven and the further scaling back of expectations for US interest rates. What's more, the price of gold has risen in dollar terms despite the broad-based strength of the US currency itself.