UBS Expects Gold to Hit $2,000 by Year End amid Low Interest Rate and Uncertainties

Investors should be putting their money in gold now as uncertainties in the upcoming events such as the U.S. election and the coronavirus outbreak will weigh the market down, stated UBS in CNBC’s “Squawk Box.”

 

UBS Global Wealth Management believed that gold is likely to reach $2,000 per ounce by year end, while representing a very good hedge amid global crisis and future events that could create volatility in the market.

“Its (gold) recent weakness represents a great entry point for investors,” said Kelvin Tay, the firm’s regional chief investment officer. Meanwhile, he pointed out that the opportunity cost for holding gold would be quite low amid the low interest rate as the Fed vowed to maintain.