In a note last week UBS analysts cut forecasts on gold.
- They had been projecting USD $1700 by June of next year.
- Have cut the forecast out a year now to $1650.
Gold is viewed as an inflation hedge but despite rocketing global inflation, the gold price has struggled.
The latest data from the Commodity Futures Trading Commission (released Friday 22 July for positions as of the prior Tuesday) show hedge funds and other speculators have turned net bearish (i.e. net short) for the first time in more than three years. If you are a contrarian gold-bug this might serve as a bullish sign!
Daily gold candles:
