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| Bracelets at the Dubai gold market (Photo credit: Wikipedia) |
Stock Tips. Gold is behaving badly. It’s supposed to be a safe-haven asset but, just when the global economy looks like going to hell in a hand basket, the gold market collapses. It should have rallied.
The gold bugs are bemused, but they are nowhere near raising the white flag.
UBS analysts in a recent note to clients said: “Our core view on gold remains bullish. We forecast an average 2012 price of $2050. Most of the factors that pushed gold higher in 2011 are not going away.”
UBS says a compelling case for higher gold returns next year can be built on persistent sovereign stress, an expected recession in Europe, benign growth across developed markets, a relatively sedate outlook for competing asset classes, still low interest rates in the US and further rate declines in Europe... Continue to read.
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