According to UBS strategists, gold could benefit from risk aversion and lower opportunity costs, but its path could be bumpy.
Short-term volatile prices
Many investors look to Gold as a diversifier for their portfolio in times of geopolitical tension. Gold may also benefit from market expectations that the Fed’s hiking cycle has now come to an end and that US rates could fall more quickly next year if the fallout from the war causes a slowdown. economic activity in the US faster than expected.
Investors should note that uncertainty over both the war and the outlook for US rates may cause short-term fluctuations in Gold prices. However, we believe that those who are long gold positions should hold them in anticipation of a recovery in the next 6-12 months. Our forecast is that Gold will reach $1,950 by the end of June 2024.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
