UBS: Gold may rise 13% during 2023‎

The Swiss investment bank, UBS, revealed that it expects a rebound in the price of gold, saying that the precious metal will rise by 13% by next winter, according to what the US CNBC website attributed to the global bank.

Higher interest rates and a strong dollar have caused gold to fall this year.

Gold was considered a traditional hedge against inflation. But higher interest rates shift investors away from bullion by increasing the alternative opportunities for holding zero-yielding assets.

Gold is down 18% since March, when prices hit $2,000 an ounce, near an all-time high. While gold was trading around $1,676 an ounce on Monday, UBS expects prices to reach $1,900 an ounce by the end of 2023.

The Swiss investment bank believes that the risk-reward ratio of owning the precious metal will increase “as the current Fed tightening cycle ends.”