UBS Warned, "Get Out Before Gold Prices Go Down Further"

UBS warned, "Get out before Gold prices go down further". The bank warned investors that gold will fall as the economic outlook improves.

Gold prices started the week with losses after UBS warned investors about their gold positions against the risk of a global recovery and a stronger US dollar. In a note to clients, Dominic Schneider, Head of Currency and Commodities at UBS Asia Pacific, said, "If you have a tactical position, close it, if you have a strategic position, hedge it. The improving global economic outlook indicates that markets will stabilize at a lower level. Why would you hold so many safe assets in such a situation?" Gold investors will be watching the Fed's speech this week and the Fed minutes, which will be released Wednesday, for more signals on the asset reduction schedule.

Ounce Gold

As of April, rising inflation and the FED's still sending pigeon messages in monetary policy, the ounce of gold, which had risen to 1,900 dollars at the beginning of June, recorded its highest level since January. Ounce gold started the new week around $1,776.

Gram Gold

Gram gold partially ended its losses after the non-farm employment data with the rise in the US dollar exchange rate despite the decline in global gold prices. However, with the decline of the USD/ TL rate and the recent losses in global gold prices, gram gold dropped below 480 TL for the first time since May 5th. Gram gold is around 483 TL on Monday.