UBS analysts reiterated their bullish outlook for gold, citing its value as a hedge against macroeconomic and geopolitical uncertainty:
- Maintains a price target of $2,700 per ounce by mid-2025
Briefly from the UBS report:
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Gold is expected to rise 23% in 2024, reaching an all-time high, due to lower US yield expectations and central banks diversifying away from the US dollar.
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Gold has once again outperformed stocks during times of high volatility, confirming this historical trend.
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This was supported by interest rate cuts by the European Central Bank, although reduced expectations for the size of the Fed’s cuts were a drag on this.
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It also received support from inflows into physically backed gold ETFs, with August marking the fourth consecutive month of inflows.
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Demand for safe haven
This article was written by Eamonn Sheridan on www.forexlive.com.
The post UBS says gold is its “Most Preferred” in its global asset allocation first appeared on Investorempires.com.