- Analytics
- News and Tools
- Market News
- Gold to surge toward $2300 amid geopolicital tensions – UBS
Gold to surge toward $2300 amid geopolicital tensions – UBS
FXStreet reports that after reaching a record high of $2,051/oz in early August, gold suffered its largest one-day decline in seven years on 11 August, dropping back below $1,900/oz. Gold has already recovered to $2,000/oz. The bout of profit-taking in gold is short-lived as noted by economists at UBS who believe a bounce towards $2,300/oz is on the cards.
“Gold’s sell-off was driven by a rebound in 10-year real rates after falling to record lows in negative territory. Demand for gold this year has been driven mostly by record inflows to gold exchange-traded funds, so the price reaction was exaggerated and should be seen in the context of the sharp price runup prior to the pullback.”
“With the Fed continuing to suppress nominal rates and inflation expectations rising, we maintain our end-year forecast of $2,000/oz.”
“In the near-term, gold may move as high as $2,300/oz, particularly if geopolitical tensions rise.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
