UBS Lowers Target on Gold (GLD) to $1,600
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Gold and the Gold ETF (NYSE: GLD) are continuing to rebound from the recent swoon, although analyst at UBS are less sanguine on the precious metal.
UBS lowered its 2013E average price forecast to $1,600/oz, and it now sees gold averaging $1,625/oz in 2014E from $1,700/oz previously.
"Investor sentiment has been dealt a severe blow in recent weeks with gold prices declining precipitously on Fed member commentary highlighting the risk of QE ending sooner rather than later and growing optimism on the global economy reducing the appeal of safe-haven assets," analyst Brian MacArthur notes. "While physical demand has stepped up ad could provide a solid floor, investment appetite will ultimately determine whether prices can move higher from here."
The firm also lowered its 2013 price target on Silver to $29/oz from $32.30/oz. "Staying true to its reputation as being the higher-beta version of gold, silver has outpaced gold to the downside in its reaction to these shifting market views," the analyst note.
Gold futures are up $13 today to approximately $1,467. The Gold ETF (NYSE: GLD) is up 0.75% to $141.96.
UBS lowered its 2013E average price forecast to $1,600/oz, and it now sees gold averaging $1,625/oz in 2014E from $1,700/oz previously.
"Investor sentiment has been dealt a severe blow in recent weeks with gold prices declining precipitously on Fed member commentary highlighting the risk of QE ending sooner rather than later and growing optimism on the global economy reducing the appeal of safe-haven assets," analyst Brian MacArthur notes. "While physical demand has stepped up ad could provide a solid floor, investment appetite will ultimately determine whether prices can move higher from here."
The firm also lowered its 2013 price target on Silver to $29/oz from $32.30/oz. "Staying true to its reputation as being the higher-beta version of gold, silver has outpaced gold to the downside in its reaction to these shifting market views," the analyst note.
Gold futures are up $13 today to approximately $1,467. The Gold ETF (NYSE: GLD) is up 0.75% to $141.96.
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