Bullish Outlooks on Gold Continue to Rise as Swiss Investment Bank Anticipates Price to Surge Even Higher
As fears of inflation continue to mount in wake of further stimulus debates across many countries around the world, more and more financial institutions have been updating their bullish forecast on gold.
Since the beginning of the year, the price of gold has skyrocketed almost 30%, with an increasing likelihood that it will continue rising. As a result, Swiss investment bank UBS joins the growing list of bullish sentiment, updating its gold price projection from $1,850 to $2,100 per ounce in 2021. According to UBS head of global markets Yeoh Choo Guan, the potential for negative real interest rates along with growing economic uncertainties around the world are pushing investors to increase their bullion holdings.
Despite the recent contraction in the equity market, Guan points to gold’s resiliency as an indication that the precious metal continues to have buying support around the world. Moreover, gold serves as an enticing portfolio diversifier; although many investors have also been flocking to bonds and real estate investment trusts (REITs), gold still remains as an alternative when those financial instruments give way.
Information for this briefing was found via UBS. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
