UBS: Gold's Safe Haven Quality to Help Prices Rise to $700

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"In this environment we believe there is a meaningful chance that gold will attract the safe haven bid that has been so far mostly absent during the credit crunch," said UBS' Robin Bhar.

Gold's traditional value as a safe haven asset is likely to save the metal from its current weakness, said UBS analysts.

Even if it doesn't, bargain hunters, namely those buying the metal for jewellery in India, are likely to step in and help the metal rise to 700 usd in one month, they added. The yellow metal is currently trading near 655 usd.

"In this environment we believe there is a meaningful chance that gold will attract the safe haven bid that has been so far mostly absent during the credit crunch," said UBS' Robin Bhar.

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