Q: The world appears to be rather less unsure now with the US-China tariff truce, India-Pakistan ceasefire and different issues. Do you suppose UBS’s gold value goal of $3,500 is achievable and sustainable in 2025?
We stay bullish on gold and suppose diversification ought to proceed to drive costs increased. We don’t suppose positioning is crowded and there may be loads of room for traders to proceed constructing gold allocations.
Q: Gold costs have fallen by over 7% ($250) from their peak and are buying and selling round $3,230 per ounce on the COMEX. Do you see the weak point to proceed within the brief time period and what stage could possibly be hit on the draw back?
Value motion may be very headline pushed in the meanwhile. There may be scope for consolidation over the Northern Hemisphere summer season months, however we count on the market to be effectively supported over all. Curiosity to purchase dips stays excessive in our view.
Q: The demand for gold has been coming from numerous quarters like central banks, funds and retail traders and in that context do you suppose provide and demand are evenly matched and if there’s a hole, are you able to quantify that?
There was a rise in demand for gold throughout the board, however restricted provide response – there is no such thing as a materials hedging from producers and scrap flows are restricted by expectations of even increased costs forward.
Q: How are you seeing credit standing cuts for the US by Moody’s, Fitch and others and may it take the costs even past your targets?
We expect dangers are skewed to the upside for gold, with the potential for even stronger diversification, particularly if traders reallocate away from US belongings into alternate options like gold.Q: What must be the technique to commerce gold and given the bullish view you might have, how a lot ought to the allocation be in a single’s portfolio?
The suitable stage of gold holdings relies on many elements such because the composition of the portfolio, threat urge for food, macro view, and so on.
(Disclaimer: Suggestions, options, views and opinions given by the consultants are their very own. These don’t characterize the views of Financial Occasions)
