mineweb.com / By Geoff Candy / Friday , 25 Jan 2013
According to UBS, the prospect of a stronger US economy is currently gold’s biggest risk.
Writing in its latest Precious Metals Daily note, the bank said that “with US economic data holding up of late, if not beating consensus, the prospect of a stronger US economy is certainly gold’s biggest risk right now – not only from a perspective of dollar strength, but more importantly because of the impact this would have on monetary policy expectations.”
Of course, the likelihood that the US economy is out of the woods, or indeed, even on the right path through the thicket is by no means a certain one, a point UBS makes clearly but it says, “the market is currently determined to stay optimistic, and as long as US data holds up, gold will be prone to downward pressure.”
Recent Comments