UBS Recommend to Buy Gold Now

“We like gold, because we think that gold is likely to actually hit about $2,000 per ounce by the end of the year,” Kelvin Tay, UBS Global Wealth Management, Regional Chief Investment Officer.

Why?

1. Hedge against the uncertainty over the US Election and the Covid-19 pandemic
2. Low interest rate, as the Fed has indicated.  Thus, the opportunity cost of holding gold, a non-yielding asset – will be quite low since investors are not forgoing interest that would be otherwise earned in yielding assets.
3. Recent correction in Gold price.

Reference:

CNBC, 2020-09-29, “UBS Says You Should buy Gold Now”