Gold may move as high as $2,300 in the near-term

UBS economist foresees gold’s price rising to $2,300 per ounce in the near-term in the event of an escalation of geopolitical tensions.

The yellow metal is trading near $2,000 at press time. Prices fell from $2,075 to $1,863 in the four days to Aug. 12, as the US treasury yields recovered from record lows.

However, despite the recent pullback, UBS is retaining its year-end forecast of $2,000 per ounce.

Indeed, with the Federal Reserve continuing to pump unprecedented amounts of liquidity alongside an uptick in inflation, a big pullback in gold looks unlikely.

Analysts at Goldman Sachs also expect gold to hit $2,300 over the next 12 months. The investment bank said last month that rising concerns over the US dollar's long-standing global reserve status are likely to bode well for the yellow metal.

Meanwhile, analysts at Credit Suisse recently said that a "perfect storm for gold" could push prices higher to $2,500 over the next year.

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