A series of recent losses have seen gold retreat back from its level of $2,000 per ounce. However, Swiss bank UBS is among those who see a buying opportunity and a return to that price range.
Gold is now sitting 4 percent below its year-to-date high reached in May 2023, noted a team of UBS strategists led by Wayne Gordon. Closing at its weakest level since a late March low, gold is set for the worst week since October last year, dogged by a strong U.S. dollar. But the price of gold is still up 7.7 percent on the year.
Gordon and the team said investors shouldn’t be too surprised by the consolidation seen in gold after such a strong rally. Their forecasts are unchanged—$2,050 per ounce by the end of September, $2,100 by the end of the year, $2,200 by the end of March 2024, and a new June 2024 target of $2,250….