UBS Turns Bullish on Gold Ahead of the US Presidential Debate

Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on telegram

Banks and other financial institutions have been bullish on precious metals this year. UBS is still convinced gold is the safest bet, especially with the US elections coming up. Hedging against financial uncertainty remains advised at any time. 

UBS Remains Bullish on Gold

It is interesting to see a bank’s division remain bullish on precious metals. After all, investing in gold can be done in different ways, and doesn’t necessarily generate profit for the bank in question. Even so, there are many factors at play that can influence the economy, either for better or worse. 

First of all, there is the COVID-19 pandemic. Despite best efforts, things are not looking too great in Europe and South America. Even the US isn’t out of the woods yet, as its rate of infections remains relatively high. For this reason alone, it is advised to hedge against financial turmoil. Exploring alternative markets and investments will play a crucial role. 

Second, there are the US elections. With the debate between Trump and Biden kicking off today, an interesting trend will be set. No one knows who the US President will be later this year. Either candidate has their work cut out for them, potentially leading to more financial instability.

All of this has given rise to bullish sentiment among UB Global Wealth Management. According to Kelvin Tay, gold is likely to hit $2,000 per ounce later this year. It is a price level the world has seen before in 2020, but one that proved difficult to sustain. Whether the second run will be more successful, remains unclear at this time. 

Will Gold Actually Recover Later This Year?

The sentiment by UBS is rather intriguing, but it may not necessarily be correct. Investors and speculators haven’t been impressed with the gold price as of late. Despite the prominent trend in the first 7 months of 2020, things have certainly cooled off quite a bit. As such, the value per ounce has dropped by roughly $200 compared to the high of 2020.

With all of these external circumstances now converging, interesting things are bound to happen. Despite what UBS may claim, it will not necessarily yield a surge in gold value. At the same time, there will be some changes in the financial ecosystem regardless. What those will entail exactly, is anyone’s guess at this point. 

Leave a Comment

Your email address will not be published. Required fields are marked *

our free Newsletter will be the best money you never spent.
  • Packed full of insider leaks, news, and articles from the biggest in the crypto and commodities industries.
  • Buy the rumor, sell the news? The Vaultoro emails highlight credible rumours before they become news.
  • You can unsubscribe at any time but we don’t think you will want to.
Vaultoro buy and sell gold bullion with bitcoin and crypto
Time for a new experience

Please choose