UBS predicts gold will rise to $ 1,600 an ounce in 2020. They comment that it continues to trade between 50 and 200 period averages, with the range still up to date. Gold is awaiting the onset of a catalyst to set the next direction.
One such factor that will drive the price is the economic situation, especially in the US, as well as the news surrounding the negotiations. In the end, however, all variables will give a full reflection of the Fed’s policy and interest rates, which will become a major engine of gold.
UBS is aware that the current consolidation is healthy, creating room for growth. In addition, investors are reassured that the positioning has not reached extreme values. For UBS, current risks are likely to continue to have a strong impact on the price of precious metal, with interest rates remaining low in the United States.
They expect the price to reach $ 1600 in 2020 and $ 1550 in the next three months.
Trader Martin Nikolov