Gold will extend its winning ways as the U.S.-China standoff harms growth, risking a deeper slowdown and inviting more central-bank easing, according to UBS Group AG, which jacked up price forecasts with a prediction the precious metal may hit $1600 within three months.

“The trade war between the U.S. and China has escalated to a new level,” Giovanni Staunovo and Wayne Gordon, analysts at the wealth-management unit, said in a report received on Monday. “Gold has demonstrated its safe-haven qualities and we stay long the metal, a trade we initiated in mid-May.”

After its revisions, UBS has a three-month trading range of $1,450 to $1,600 an ounce, plus a six-month forecast of $1,600 and 12-month view of $1,650. Previously, both the half-year and 12-month outlooks were set at $1,500.

“The main risk to our call is a back flip by Trump or concessions and deescalation by China, paving the way for a trade deal ahead of the U.S. presidential elections in 2020,” the UBS analysts said.