Bloomberg reported yesterday that UBS AG (NYSE:UBS) has increased its 2014 gold price forecast to $1,300 per ounce, $100 higher than its previous target of $1,200. However, in 2015, the bank still thinks the metal’s price will average $1,200.
As quoted in the market news:
The one-month forecast was raised to $1,280 an ounce from $1,180, while the three-month outlook was increased to $1,350 from $1,100, analysts Edel Tully and Joni Teves said in a report. Gold may average $1,300 in 2014 from a previous estimate of $1,200, they said, while holding the 2015 target at $1,200.
‘Gold has started to shed its stigma, if slowly,’ Tully and Teves wrote in yesterday’s report. ‘Over the past thirteen months gold was either the favorite asset to short or to ignore completely. Recent developments, however, suggest that this is no longer the case, and momentum is returning.’