UBS analysts see average gold price at $1,550/oz in 2011

摘要

UBS analysts said Wednesday that gold remainsnon its buy list, with precious metals strategist nEdel Tully seeing the metal average $1,550/oz nnext year, up from a prior forecast of $1,400oz. During a conference call, Tully said gold ncould “quite possibly appreciate 20%” in 2011 nmainly due to European debt issues and con-ntinuing quantitative easing across the globe, nparticularly in the US. The strategist added that nit is premature to sell gold although investors nare turning back to equities. “From a currency nperspective gold has upside ahead,” Tully said, nadding that UBS believes China’s citizens are nincreasingly owning gold. With China now the nworld’s largest gold producer, ti would likely beatnIndia as the world’s largest consumer. In a note nissued ahead of the call UBS said: “We believe nit’s too early for these negative risk factors to nencourage investors to sell [gold]. For new inves-ntors, gold still offers considerable upside poten-ntial in 2011. While the potential for the Fed to nnot utilize its full tranche of the $600 billion QEIInbucket started to gain support in November, nDecember’s disappointing non-farm payrolls, the nrise in the unemployment rate to 9.8% and Fed nChairman Bernanke’s comments that additional nUS Treasury purchases beyond the current pack-nage may be required are all ammunition for a nhigher gold price.”