fxs_header_sponsor_anchor

News

Gold Price Forecast: XAU/USD to soar on a regional escalation of the Middle East conflict – UBS

Gold should remain a good hedge, despite worries that rates will remain higher for longer, economists at UBS report.

Gold has proven its worth as a diversifier again

The price of the metal has climbed by about 9% since the Hamas attack on Israel and a regional escalation of the conflict would likely boost Gold further.

While we believe that safe-haven flows would eventually reverse, Gold has proven its worth as a diversifier again. In addition, we ultimately see support for Gold as the slowing US economy allows Fed officials to move toward monetary easing – which would likely lead to lower yields and a lower opportunity cost of holding the non-interest-bearing metal.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.