UBS increases medium-term gold price predictions
A major Swiss bank has confirmed today (January 21st) that it has upped its gold price predictions for the medium term, Reuters reports.
UBS has announced that it now predicts that gold will be at $900 per ounce in a month's time, while its three-month projection has been increased to $850 per ounce - both up from original calls of $800.
Strategist John Reade explained in a note that the move has been motivated by a concerted surge in the volume of gold investment in the current uncertain financial climate.
One section, quoted by the news provider, read: "Our client flows suggest that the developments in the banking sector have truly spooked investors again, with strong demand for coins and small investment bars."
That view was supported last week by Frank Lesh, a trader at Chicago-based firm Future Path Trading LLC, who explained that the current gold price represents an excellent chance to invest in the yellow metal.
"Volatility in other markets and the geopolitical tensions are always supportive for gold. A good dip in prices is a buying opportunity," he told Bloomberg.
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