© Reuters. UBS Bank: Gold prices may reach this level in the near term!
Arabictrader.com – made strong gains due to the recent market volatility represented by the banking system turmoil in the US and Europe; Resulting in immediate breaching the highest level of $2,000 an ounce, marking its highest level in 12 months.
In this regard, experts at UBS Bank stated that gold prices are likely to reach the level of $ 2100, which is the target that the Swiss bank expected for gold prices in 2024, earlier than expected due to recent banking tensions.
While it seems that a recurrence of the global financial crisis has been avoided, the bank’s experts believe that it will take some time to fully restore investor confidence in the financial markets, which pushes cash flows for investors to gold metal as a safe haven, and analysts also suggested that the funds traded on the gold exchange will record net flows in March for the first time in almost a year.
Earlier, strategists at TD Securities suggested in this regard that investors’ risk appetite towards gold would improve; With the banking crisis that began with the collapse of Silicon Valley Bank and has now spread to European banking institutions, providing a strong bullish impetus for gold trading.
Bank of Canada analysts also added that with credit conditions tightening as a result of the challenges facing the banking sector, the US Federal Reserve, along with investors, believes that any future US interest rate increases will not be the same pace as before.
Analysts continued that in order for gold to maintain new sustainable highs above $ 2000, investors will need the US Federal Reserve to show a willingness to cut interest rates even if inflation remains far from the US Fed’s target of 2%.
