[Ed. Note: Hey, UBS, what about YOUR ABN AMRO division that DEFAULTED on customers physical gold holdings? What does that “forecast”?]
Global financial services company UBS has lowered its gold price forecasts after the U.S. Federal Reserve said the US economy was expanding strongly enough for the central bank to slow the pace of bond buying later this year, Reuters reported.
UBS now expects quantitative easing to taper off in the fourth quarter rather than in the first quarter of 2014, as it had previously thought. It also raised its forecast of the yield on 10-year US Treasury bonds by 30 basis points to 2.5%.
“This creates an increasingly difficult environment for gold,” UBS strategist Edel Tully said in a note.
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