UBS analysts have reaffirm their bullish outlook on gold, pointing to its value as a hedge against macroeconomic and geopolitical uncertainties:
- maintains a target price of $2,700/oz by mid-2025
In brief from the UBS report:
Gold has jumped by 23% in 2024, to its highest ever price, due to lower US yield expectations and diversification out of US dollars by central banks.
Gold has once again outperformed equities during times of high volatility, reaffirming this historical tendency
has been supported by the European Central Bank’s rate cuts, although trimmed expectations of the scale of Fed cuts has been been a bit of a counter to this
support also from flows into physically-backed gold ETFs, August marked the fourth consecutive month of inflows
safe-haven demand
This article was written by Eamonn Sheridan at www.forexlive.com.
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