In a surprise move, Gold & Silver refused to retract as expected catching many experts off-guard. The lack of a decent gold pullback has left many investors feeling frustrated and patience for a better buying opportunity is now wearing quite thin, which is why gold has attracted very decent buying this week, UBS strategist Edel Tully was quoted on CNBC.
This may be showing investors the New-Norm for metals is in place. The day after the President told the press a tentative agreement was reached with the Gang-of-Six, Gold & Silver both retracted. Yet, neither retracted for any length of time as was expected since the Debt Deal was officially announced. Tully went on further to add, But given that these are not ordinary times, ordinary rules do not apply. UBS bank had raised its three-month price forecast to $1,850, from $1,600.
This forecast by UBS is one of the most aggressive predictions by a major bank on record. Given that forecast Gold would be set to end the year with almost a 30% gain making for the 11th straight year of gains. While we issued a warning of a potential retraction in price that is yet to happen, based on the Debt Ceiling Deal, we still stand by our usual mantra of continue to acquire over the long term. It will be the best investment advice you ever receive.
Read more: CNBC – Gold at Record as Debt Worries Mount; Central Banks Buy