Gold's summer rally is just the start – UBS

Kitco News:

“Gold rally in June that has driven prices nearly $200 higher could be just the start as other investment sectors, largely absent during the summer, finally jump into the market, according to one market strategist.

In a report Tuesday, Joni Teves, precious metals strategist at UBS, said that she is upgrading her gold forecast as she sees prices pushing through $1,600 an ounce in the next 12 months. She added that she expects gold prices to push to $1,600 by the end of the year.

Looking ahead, Teves said that she sees gold prices ending next year at $1,635 an ounce and sees prices averaging $1,650 an ounce in 2021.

“Participation so far has largely been limited to institutional investors and the official sector. As gold gains further upward momentum, we think other areas in the market can become more active and support the next leg higher,” she said.”

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