Hello everyone! Today, I'd like to delve into a fascinating topic on investment. More specifically, we're going to discuss the three reasons why the Swiss investment banking giant, UBS, is advocating for 'buying gold', a commodity of enduring value no matter how much the economic climate changes.
"Central Banks Don't Hesitate!"
UBS cites the love central banks have for gold as the first reason. Especially in the past year, central banks purchased gold on an unprecedented scale. This isn't solely due to the demand for gold itself, but as geopolitical risks and inflation concerns increase, central banks are raising their demand for gold as a safe asset.
"How Much Weakness Will The US Dollar Show?"
The second reason UBS provides is the expected weakness of the US dollar. As the Fed's tightening policy is temporarily suspended, the US dollar is anticipated to weaken. Historically, when the dollar shows weakness, gold prices have increased—a fact that implies a high possibility of a surge in gold prices.
"What Impact Will The US Economic Recession Have?"
Lastly, UBS points to the increased risk of a US economic recession as the third reason. Recent US economic data indicate a slowdown in growth. In such situations, investors are likely to seek safe assets like gold, a point that UBS emphasizes.
Therefore, due to these reasons, UBS predicts that the price of gold will rise to $2,100 per ounce by the end of this year and to $2,200 per ounce by March 2024.
In summary, despite changing economic situations, gold maintains its value and allure for investors. So, according to UBS, it's a good time to consider adding gold to your investment portfolio.
