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:
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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.
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Gold has once again outperformed equities during times of high volatility, reaffirming this historical tendency
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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
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support also from flows into physically-backed gold ETFs, August marked the fourth consecutive month of inflows
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safe-haven demand
This article was written by Eamonn Sheridan at www.forexlive.com.
