Gold's Pain Trade Seen as Temporary, Record Highs Ahead
Is Gold's Decline Temporary?
Gold has lost more than 15% since US and Israeli strikes on Iran in late February. However, UBS's Chief Investment Office expects the metal to reclaim record highs before year-end.
UBS Gold Forecast
UBS trimmed its year-end forecast to $5,500 per ounce from $5,900, but still sees gold surpassing its prior record of around $5,400.
Three Pillars Supporting Gold
Ulrike Hoffmann-Burchardi, CIO at UBS Financial Services, cites three factors: expected Fed rate cut in December, strong central bank demand, and gold's role as a hedge against rising global debt.
Near-term, gold remains sensitive to Iran headlines, energy prices, and the dollar. Medium-term, UBS stays positive.
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