UBS says you should buy gold now

METALS

PUBLISHED TUE, SEP 29 202012:54 AM EDT UPDATED TUE, SEP 29 2020 9:37 AM EDT

Article From CNBC.com

Weizhen Tan

@WEIZENT

KEY POINTS

  • “We like gold, because we think that gold is likely to actually hit about $2,000 per ounce by the end of the year,” Kelvin Tay, regional chief investment officer at UBS Global Wealth Management told CNBC.
  • Gold prices have shot to record highs this year — above $2,000 per ounce for the first time. Recently however, prices have slipped and last traded at around $1,884 per ounce.

Gold bars being cast at a plant by Gulidov Krasnoyarsk Non-Ferrous Metals Plant in Russia.

Kirill Kukhmar | TASS | Getty Images

SINGAPORE — Investors should be putting their money in gold now, as it represents a “very good hedge” ahead of risk events such as the U.S. election, UBS Global Wealth Management told CNBC.

“We like gold, because we think that gold is likely to actually hit about $2,000 per ounce by the end of the year,” according to Kelvin Tay, the firm’s regional chief investment officer, on Tuesday.

“And gold has certain hedges to it,” Tay said. “In (the) event of uncertainty over the U.S. election and the Covid-19 pandemic, gold is a very, very good hedge. And its recent weakness represents a great entry point for investors,” he added, speaking to CNBC’s “Squawk Box.”

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