UBS maintain a US$2900 target for gold

UBS is sticking to its bullish gold forecast.

• says the move higher for equities and lower for gold is a ‘highly optimistic’ view for lower policy and political risk, this is premature
• expect US yields and US dollar to move into downtrend, which will support gold
• gold fundamentals, as a hedge and diversity play, are intact

This article was written by Eamonn Sheridan at www.forexlive.com.