Union Bancaire Privée (UBP) advises clients to increase their allocation to gold, predicting the precious metal will build on its hot rally and continue to strengthen, surpassing $5,000. “We remain very bullish on gold,” stated Peter Kinsella, the firm's Head of Foreign Exchange Strategy. “We have positioned for a move to at least $5,000-$5,200 by the end of this year. Over the longer term, the trajectory is certainly higher.” He indicated that the firm's current allocation to gold stands at 7%, and this position could be increased, adding that the ideal portfolio weighting should be between 7% and 15%. The institution believes that central bank buying, interest from retail investors, and geopolitical tensions will propel gold prices higher.
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