Gold prices could rise toward $4,700 an ounce as mounting political and financial market risks sustain demand for safe-haven assets, according to UBS.
The bank’s strategists believe that bullion’s recent pullback is just a pause in its ongoing rally.
“We think gold prices can climb further, even if the potential end to the longest government shutdown in U.S. history supports risk sentiment,” strategists said in a note.
Political uncertainty remains a key driver.
The latest data from the World Gold Council showed total demand reached a record high in the September quarter, driven by investment flows and renewed central bank buying.
UBS expects full-year demand to be the strongest since 2011.
Alex Shishlo, Editor in Chief of the European Bureau, Rough&Polished
