Union Bancaire Privée (UBP) has lowered its year-end target for gold to $4800 per ounce. While maintaining a positive long-term outlook on the precious metal, the firm is currently holding off on increasing its position.
The bank's current allocation to gold is neutral, at approximately 5%, which is below the overweight level held earlier this year. This was stated by Paras Gupta, Head of Discretionary Portfolio Management for Asia at UBP, in an interview.
Gupta noted that the previous overweight stance "posed the biggest risk to our portfolio."
UBP is looking for a sustained ceasefire in the Middle East and greater clarity on the paths of inflation and interest rates before considering an increase to its gold holdings.
For investors currently without exposure to gold, Gupta suggested that a price drop below $4000 per ounce would present a highly attractive entry point.
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