Comments via UBS on gold, an economist note - looking for:
- 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.
UBS cite:
- 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.
