“Gold is down but not out”: This is how Swiss bank UBS characterized the performance of gold in its latest report, according to Art of Jewelry. UBS expects the precious metal to average $1,350 an ounce in 2017.
According to the bank’s Strategist Joni Teves, the bank expects gold to “reflect moves across a range of markets after U.S. elections, with expectations that fiscal stimulus will boost economic growth and yields”. UBS sees gold as “attractive” and says it would buy “into further weakness, gradually building a long-term gold position”.
The bank added: “A few weeks ago, we set our three-month forecast for gold at $1,300; while the recent pressure on the market makes this target look ambitious, we continue to expect gold to make its way back towards this level in the months ahead as the rationale for holding gold from a strategic standpoint remains intact, in our view”.
