Gold Builds on Powerful Rally

UBS Wealth Management strategists suggest maintaining a long position on gold, predicting it could surpass $1650 per ounce in the coming weeks. Gold has been favored as a safe haven during the coronavirus outbreak, with investors turning to it amidst lower yields and high equity valuations. UBS anticipates that the effects of the coronavirus will diminish by the end of the first quarter, leading to rising yields and potential pressure on gold prices.

What is the current position of UBS Wealth Management regarding gold?

• Short gold

• Avoid gold

• Long gold

• Neutral on gold

Why has gold been gaining ground during the coronavirus outbreak?

• Due to its status as a safe haven

• Because of increasing oil prices

• Because of rising interest rates

• Due to decreasing demand for stocks

What makes gold more attractive when equities are highly valued?

• Potential wobbles in equity markets

• Gold's high liquidity

• Gold's low volatility

• Gold's historical performance

According to UBS, when might the impact of the coronavirus start to weaken?

• By the end of the second quarter

• By the end of the first quarter

• By the end of the third quarter

• By the end of the year

What is expected to happen to gold prices when yields rise?

• Gold prices will increase

• Gold prices will come under pressure

• Gold prices will remain unchanged

• Gold prices will stabilize