US LNG exports surge but will buyers in China turn up?
Investing.com -- Gold prices have traded in a range of $3,200-3,400 per ounce since mid-April, with temporary spikes above $3,500 on April 22 and dips below $3,120 on May 15, according to UBS. The price stability has persisted despite modest ETF outflows and profit-taking by money managers in recent weeks.
UBS expects the precious metal to retest the $3,500 per ounce level as inflows resume. The firm’s base case remains bullish on gold prices, with the expectation that buying interest will return to the market in the coming months.
Recent discussions with investors reveal a shifting perspective on gold holdings, with many now viewing the metal as a long-term portfolio diversifier rather than merely a hedge against short-term geopolitical events. This trend reflects a more strategic approach to gold allocation among institutional and retail investors.
European Central Bank data supports this shift, showing gold now accounts for approximately 20% of total global official reserves, surpassing the euro in central bank holdings and ranking second only to the US dollar. This represents a significant increase from the previous decade’s average allocation of about 14%.
UBS maintains that a mid-single-digit allocation within a balanced portfolio is optimal for investors with an affinity for gold. The firm continues to hold a long position in gold within its global asset allocation strategy.
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