UBS says gold is its "Most Preferred" in its global asset allocation

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:

• 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.

• Gold has once again outperformed stocks during times of high volatility, confirming this historical trend.

• 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.

• It also received support from inflows into physically backed gold ETFs, with August marking the fourth consecutive month of inflows.

• Demand for safe haven

This article was written by Eamonn Sheridan on www.forexlive.com.