Swiss Bank UBP Buying Gold Again, Forecasting $6,000 Year-End

etm7ko9)7}}2sj}2({exb1qc_media_dl_1.png BloombergArticle content(Bloomberg) — Union Bancaire Privée is buying gold again after cutting a significant position in response to an Iran war-induced slump, saying it believes the long-term outlook remains intact. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Swiss private bank is gradually adding bullion to discretionary client portfolios after cutting exposure to 3% from around 10%. The metal has tumbled since the war began due to fears of higher interest rates, and a liquidity squeeze that saw traders offload holdings to cover losses elsewhere. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“We have taken the first steps to rebuild” gold portfolios after the flush-out of “one-sided positions,” Head of Discretionary Portfolio Management in Asia Paras Gupta said in an interview. The bullion positions of institutional and retail investors are now “quite balanced,” he added. The bank managed around CHF184.5 billion ($233 billion) of client asset as of last year. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentUBP is looking to further rebuild its gold positions, consisting mostly of bullion-backed exchange-traded funds, after they recovered to around 6% of discretionary portfolios. Gupta said the bank still sees prices rising to $6,000 an ounce by the end of the year as structural demand — including central bank buying, concerns about fiscal deficits and geopolitical tensions, remain intact. Article contentGold fell on Monday after US-Iran peace talks ended without resolution and the US said it would blockade the Strait of Hormuz. Bullion has fallen by around a 10th since the war began as investors focus on inflationary risks as energy prices surge. Article content“The risk of inflation is coming in more immediately,” Gupta said. This could weigh on gold in the short term, but the macro forecast does not point toward recession, he added. Article contentArticle contentUBP’s view echoes a slew of investment banks that have recently affirmed bullion’s longer-term outlook despite the recent downturn. ANZ Banking Group Ltd. and Goldman Sachs Group Inc. have projected gold prices to go higher. Article contentDip-buyers have recently stepped in to help bullion claw back some losses. Global holdings by gold-backed ETFs increased by around 20 tons in April following the biggest monthly outflows in five years in March, according to a Bloomberg tally. Article contentAdditional buying “requires a lot more clarity in terms of how geopolitical events are playing out. We currently don’t have that,” Gupta said. “The events over the weekend only reinforce the need for more clarity.”Article contentTrending GFL Said to Near Deal to Buy Secure Waste for Over $4.3 Billion PMN Business Posthaste: More Canadians desperate for tax refund to plug holes in their finances News Oil Tankers U-Turn in Hormuz as US-Iran Talks Break Down PMN Business This creative money transfer strategy among family members could raise red flags with CRA Personal Finance How the global energy crisis is shaking Canada from coast to coast — and could leave a lasting legacy Oil & Gas Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. GFL Said to Near Deal to Buy Secure Waste for Over $4.3 Billion PMN Business Posthaste: More Canadians desperate for tax refund to plug holes in their finances News Oil Tankers U-Turn in Hormuz as US-Iran Talks Break Down PMN Business This creative money transfer strategy among family members could raise red flags with CRA Personal Finance How the global energy crisis is shaking Canada from coast to coast — and could leave a lasting legacy Oil & Gas