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Research Note from Swiss Investment Bank UBS

UBS Investment Research on Gold dated March 10:

"Using a proprietary econometric model we have generated a probability cone for the future possible price path for gold. Using different environments for the level of inflation volatility, US dollar and absolute level of inflation we have determined that future returns on gold are likely to be positively asymmetric, with potential upside to US$2,500/oz.

Exposure to gold recommended
Our asset allocation team has moved gold to overweight from neutral. Given the
broad uncertainties in the current macro climate we believe that investors should look to gold given its historic tendency to act as a hedge against these risks.