While equities are not the only assets hitting all-time highs, gold has been reaching record levels in recent days. Economists at UBS have taken a closer look at the outlook for the yellow metal.
Gold as a Portfolio Hedge
UBS remains positive on the price of gold for 2024 and continues to recommend it as a portfolio hedge. They expect gold to trend higher to $2,250, but suggest waiting for price setbacks to gain exposure, even if they are modest and brief.
The analysts at UBS also see gold as a good portfolio hedge against risk spikes, recommending an allocation of around 5% in diversified and balanced USD-based portfolios.
Gold has historically been seen as a safe haven asset during times of economic uncertainty and market volatility. Its value tends to increase when other assets such as stocks and bonds are underperforming. Investors often turn to gold as a way to protect their portfolios and reduce risk during turbulent times.
