UBS expects gold prices to reach a new record level of $6,200 an ounce in the coming months, due to a continuation of the key factors that underpinned the strong rally over the past year.
The Swiss bank noted that rising geopolitical tensions are boosting demand for the yellow metal and trade uncertainty is strong again, especially after US President Donald Trump imposed a 15% global tax.
UBS analysts also expect the Federal Reserve to cut interest rates by 25 basis points each by the end of September next year, which they say will reduce the opportunity cost of holding non-profitable metals, according to Western media.
UBS Bank expects gold prices to reach a new record level of $6,200 an ounce in the coming months, due to the continued key factors that underpinned the strong rally over the past year.
The Swiss bank noted that trade uncertainty has returned in a big way, especially after US President Donald Trump imposed a 15% tax on the world, and rising geopolitical tensions boosted demand for the yellow metal.
According to Western media, UBS analysts also expect the Fed to cut interest rates twice by 25 basis points each by the end of September, thereby reducing the opportunity cost of holding non-yielding metals.
