UBS reduced its 1-month and 3-month gold and silver price targets to reflect
the recent decline in the precious metals. For gold, the firm lowered its
1-month forecast by 9.0% to $1,775 per ounce and its 3-month by 7.1% to $1,950
per ounce. UBS also cut its 1-month silver estimate by 30.4% to $32.00 per ounce
and its 3-month target by 30.0% to $35.00 per ounce. In a note to clients, UBS
analysts wrote that "Our core bullish view on gold remains unchanged and the
light nature of [speculative] positioning is a big positive, but our previous
one-and three-month [prices]…are overly ambitious given the recent slowdown in
market momentum." "The 'clean' nature of current spec positions, along
with physical and long-term demand, is creating a very healthy foundation for
gold to climb from, the firm added.
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