
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 worth goal of $3,500 is achievable and sustainable in 2025?
We stay bullish on gold and suppose diversification ought to proceed to drive costs greater. We don’t suppose positioning is crowded and there’s loads of room for buyers 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 spot to proceed within the quick time period and what stage may very well be hit on the draw back?
Value motion may be very headline pushed for the time being. There may be scope for consolidation over the Northern Hemisphere summer season months, however we count on the market to be nicely 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 buyers 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 greater 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 predict dangers are skewed to the upside for gold, with the potential for even stronger diversification, particularly if buyers reallocate away from US property into alternate options like gold.Q: What must be the technique to commerce gold and given the bullish view you could have, how a lot ought to the allocation be in a single’s portfolio?
The suitable stage of gold holdings is dependent upon 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 specialists are their very own. These don’t symbolize the views of Financial Occasions)