Gold (XAU/USD) has now gained close to 19% since a recent low in October and almost 7% over the past month alone. Strategists at UBS analyze the yellow metal’s outlook.
Part of the recent rally may reflect technical factors, as prices crossed key resistance levels. But while we see potential for a pullback in Gold in the near term, this does not mean the rally can’t go further over the coming year.
We see Gold being supported by several trends: The Fed appears on track to cut rates. Central bank and investor buying of Gold should be supportive. Heightened geopolitical risk should also support Gold.