UBS Says It’s Staying Long Gold as Price Now Destined for $1,600

Gold will extend its winning ways as the U.S.-China standoff harms growth, risking a deeper slowdown and inviting more central-bank easing, according to UBS Group AG, which

jacked up price forecasts with a prediction the precious metal may hit $1,600 within three months.

“The trade war between the U.S. and China has escalated to a new level,” Giovanni Staunovo and Wayne Gordon, analysts at the wealth-management unit, said in a report received on Monday. “Gold has demonstrated its safe-haven qualities and we stay long the metal, a trade we initiated in mid-May.”

• Bloomberg