Gold has been consistently reaching all-time highs, and economists at UBS remain optimistic about its outlook. They view gold as a valuable portfolio hedge against risk spikes and anticipate the precious metal to trend higher, reaching $2,250 in 2024.
Despite the positive outlook, UBS suggests waiting for potential price setbacks before gaining exposure to gold, even if these setbacks are expected to be modest and brief. The recommendation aligns with a strategic approach to maximize entry points and optimize investment decisions.
The economists at UBS continue to emphasize gold’s role as a reliable portfolio hedge, especially in the face of increased market uncertainties and potential risk events. They recommend allocating around 5% of diversified and balanced USD-based portfolios to gold, recognizing its resilience and value in maintaining a well-rounded investment strategy.
Investors will likely keep a close eye on economic indicators, global events, and central bank actions to gauge the trajectory of gold prices. The recommendation from UBS reflects the ongoing relevance of gold as a safe-haven asset and a key component in portfolio diversification strategies.
