UBS maintains a positive outlook on gold and expects prices to hit new highs this year. Joni Teves, a precious metals strategist at UBS Investment Bank, said during a media conference call today (May 12) that, in the medium to long term, the likelihood of gold prices rising—and even exceeding baseline forecasts—is continuing to increase.
She noted that the core drivers behind the rise in gold prices remain unchanged, with demand from both the private and public sectors continuing to expand, underpinning the overall upward trend. Furthermore, gold's status as a core component of investment portfolios is growing. Amid high macroeconomic uncertainty, the trend toward diversifying portfolios into gold remains strongly supported.
In the short term, Joni Teves believes that gold's current consolidation actually presents an opportunity to build positions. The market remains underweight in gold; if the price reaches the psychological threshold of $4,000 per ounce, it could be seen as a good opportunity to buy on the dip.
Regarding silver, Joni Teves noted that investor sentiment toward the metal has improved significantly since last year. As investors seek "high-beta" assets, silver is expected to outperform gold.
She also noted that investment demand for silver tends to be tactical, whereas gold is considered a strategic allocation. Strong physical demand in China will also support the market, including restocking needs and continued growth in physical investment, which will help boost global investor confidence.
However, Joni Teves also pointed out that because silver prices are significantly more volatile than gold, market sentiment toward silver remains focused on short-term and tactical positioning rather than long-term core holdings.
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