UBS Raises Gold Price Forecasts

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By Rudi Filapek-Vandyck

Last week’s decision by the Federal Open Market Committee (FOMC) to leave US interest rates unchanged for the time being with a bias to possible further tightening in the near future has led to higher short term gold price forecasts at UBS.

The broker’s currency team currently has a neutral stance on the US dollar, for the short term, while agreeing with every other expert and his dog that the longer term outlook should see the greenback weakening.

The precious metals experts at the broker have decided to increase their average spot price forecasts for gold in the short term. They now foresee gold bullion trading at US$630/oz in one month and US$680/oz in three. Both forecasts are up from US$600 and US$650 respectively.

Forecasts for other precious metals have been lifted as well.

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