UBS: Investors Have Opportunity To Buy Gold At More Attractive Levels-Shanghai Metals Market

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UBS: Investors Have Opportunity To Buy Gold At More Attractive Levels

Industry News 04:37:19PM May 30, 2016 Source:SMM

Friday May 27, 2016 09:06

UBS says any further weakness in gold may be a buying opportunity. The metal has fallen some $90 an ounce from its recent highs, leaving it not far from $1,200 psychological support. The bank says it’s “understandable” that some investors might be hesitant to buy into weakness, considering recent gains in the U.S. dollar, equities back near the highs for the year, rising 10-year Treasury yields and financial markets pricing in an increased likelihood of Federal Reserve tightening since the start of last week. “However, our long-held view is that positions being put on this year are strategic in nature, and as such we would expect interest to hold some gold as a hedge against uncertainty would still be intact,” UBS says. “This suggests that those who had missed the move in January, and were unwilling to chase the market, should now have the opportunity to build gold exposure at more attractive levels.”

By Allen Sykora of Kitco News; asykora@kitco.com

UBS Looks For Official-Sector Gold Buying To Continue But At Slower Pace

Friday May 27, 2016 9:04

UBS looks for central banks to remain net buyers of gold. Analysts cite International Monetary Fund data showing that for the year to date, Russia has bought 62 tonnes, China 46 and Kazakhstan 10. “The concentration of purchases creates a risk should gold strategies change,” UBS says. However, the bank continues, “our view is that these strategies are long-term in nature and therefore continue to expect net buying from the official sector, albeit at a slower pace.”

Source:Kitco

UBS: Investors Have Opportunity To Buy Gold At More Attractive Levels

Industry News 04:37:19PM May 30, 2016 Source:SMM

Friday May 27, 2016 09:06

UBS says any further weakness in gold may be a buying opportunity. The metal has fallen some $90 an ounce from its recent highs, leaving it not far from $1,200 psychological support. The bank says it’s “understandable” that some investors might be hesitant to buy into weakness, considering recent gains in the U.S. dollar, equities back near the highs for the year, rising 10-year Treasury yields and financial markets pricing in an increased likelihood of Federal Reserve tightening since the start of last week. “However, our long-held view is that positions being put on this year are strategic in nature, and as such we would expect interest to hold some gold as a hedge against uncertainty would still be intact,” UBS says. “This suggests that those who had missed the move in January, and were unwilling to chase the market, should now have the opportunity to build gold exposure at more attractive levels.”

By Allen Sykora of Kitco News; asykora@kitco.com

UBS Looks For Official-Sector Gold Buying To Continue But At Slower Pace

Friday May 27, 2016 9:04

UBS looks for central banks to remain net buyers of gold. Analysts cite International Monetary Fund data showing that for the year to date, Russia has bought 62 tonnes, China 46 and Kazakhstan 10. “The concentration of purchases creates a risk should gold strategies change,” UBS says. However, the bank continues, “our view is that these strategies are long-term in nature and therefore continue to expect net buying from the official sector, albeit at a slower pace.”

Source:Kitco