UBS Urges Clients to Buy Gold - We Already Are Say Investors

Source:

UBS Commodity Strategist John Reade has put out a note today urging clients to "Buy Gold". He is recommending that investors buy gold with an initial target of $850 (the fix on the morning of 28th August was $833.50), which is also the UBS one-month forecast price, with further gains expected "towards $900 and beyond".

UBS Commodity Strategist John Reade has put out a note today urging clients to "Buy Gold". He is recommending that investors buy gold with an initial target of $850 (the fix on the morning of 28th August was $833.50), which is also the UBS one-month forecast price, with further gains expected "towards $900 and beyond".

The three factors that UBS has been monitoring in order to take this tactical stance have been the following: Investment positioning, fundamental demand, and the dollar.

Investment: there has been substantial long liquidation on COMEX, TOCOM and the OTC markets...

Back at UBS the Bank states that it has seen "unprecedented" gold demand from India, from European consumers and from other Asian clients, that demand is very strong in Turkey and the Middle East and that it should pick up in Italy as of early September as the holiday season draws to a close...

The final component the UBS cocktail is the performance of the dollar and the bank's head of FX Technical Strategy has issued a sell recommendation on the dollar...

September approaches, and with it the seasonal upturn in gold demand. The mini gold-rush experienced in major consuming nations over the past couple of weeks has prp-empted that to a degree, but the elements are in place for renewed strength in gold and UBS has nailed its colours to the mast.

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