Tuesday July 04, 2017 15:33
As gold prices waver, so do analysts from UBS Group AG’s wealth management team.
Speaking with Bloomberg, UBS’ executive director for commodities and foreign exchange Wayne Gordon said, “We’re not saying we have a bullish bias; we’re not saying we have a bearish bias.”
But with prices hovering near $1,220 an ounce, after a sharp sell-off earlier in the shorterned trading week, Gordon added that he sees a good buying opportunity in gold near current levels.
“We’re saying that tactically, people should be buying it somewhere near $1,200 and selling it again somewhere near $1,300,” he said.
“[I]t’s because we have a view that real rates go sideways. So the pickup in nominal rates will be equally matched by the pickup in inflation.”
Gold prices dipped to 7-week lows Monday, as bears took advantage of the thin trading atmosphere, and the U.S. dollar rebounded. Prices have since recovered, with gold last seen 0.24% higher at $1,223.12 in electronic trading.
Despite the volatility, UBS still sees a case for the metal.
“We like the insurance qualities for gold just from an unknown perspective at these sorts of levels,” Gordon said.
By Sarah Benali
For Kitco News