Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

UBS Urges Clients to Buy Gold on Pullbacks

Friday, October 14, 2016 3:57
% of readers think this story is Fact. Add your two cents.

Gold barsUBS analysts Wayne Gordon and Giovanni Staunovo, who head the investment bank’s Chief Investment Office Wealth Management Research arm, sent a note to clients recently advising them to buy gold.

The crux of UBS’ bull story for the yellow metal is the Federal Reserve’s long-term ultra-low interest rate policy. Gordon and Staunovo said that as long as the Fed doesn’t boost rates substantially in a short period of time (and we all know the chances of that happening are miniscule), that gold should perform well.

Overall, the firm predicts gold will rise from current levels to around $1,350 per ounce over the next six to twelve months, which is about a 7% gain. However, that medium-term bullish call isn’t without a caveat.

The analysts warned that gold could drop as low as $1,225 an ounce (about a 2.3% decline) over the next three months, as investors await and then digest December’s upcoming Fed decision.

Still, UBS believes the Fed is highly unlikely to raise rates in December, which will ultimately be good news for gold. “A slow moving Fed and a moderate pickup in inflation should push real interest rates deeper into negative territory in 2017. Historically, this has acted as a powerful driver of higher gold prices.”


The SPDR Gold Trust ETF (NYSE:GLD) fell $0.50 (-0.42%) to $119.53 per share in premarket trading Friday. Year-to-date, the largest ETF tied to the spot price of gold bullion, with over $38 billion in assets, has gained 18.3%.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global


Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.