Via a note from UBS (the bank's Wealth Management area) on their outlook for gold.
- Analysts at the bank say that the price is above their long-term forecast of US$2850 and is above their estimate of fair value
- And add that gold is showing its worth as a store of value and a hedge against uncertainty
- They have boosted their forecast to US$3000 over the next 12 months
In brief on reasoning:
- If they happen, US tariffs on Canada & Mexico are unlikely to last long.
- See a gradual increase in US tariffs on China to 30%.
- Gold will continue to be supported by uncertainty, global rate cuts, and investor demand.
