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Warning of heavy fall in gold! Know why and how cheap gold can be: Report

During TV interviews, Dominic Schneider has also said that platinum could be a better investment in the precious metals sector due to the high industrial exposure.

Gold (1)

Gold Rates may Down in International Market: After the hit of Corona epidemic, economies around the world are trying to recover and they are also showing improvement. Meanwhile, news is coming at the international level that there may be a huge fall in gold in the coming time. According to a Bloomberg report, Research Group AG of multinational investment bank UBS has expressed this apprehension regarding gold. UBS Group has warned investors about this.

In view of the improvement in the economy, UBS Group has asked investors to consider bullion holdings. Dominic Schneider, Head of Commodities and Asia Pacific Foreign Exchange at UBS Global Wealth Management CIO’s office, has predicted a fall in gold and silver prices. In an interview with Bloomberg TV on Monday, Dominic Schneider said that the price could fall closer to $1,600 an ounce, while silver could fall to $ 22 an ounce or less.

What is the basis for the probability of a fall in the gold rate?

UBS Group says that the economy is improving rapidly after the Corona epidemic. The US job market data has also come out better than expected, while the retail sales data coming on Tuesday is also expected to be better. In such a situation, the Federal Reserve may decide to increase the interest ahead of time.

Experts say that the improvement in the economy is a sign of reduction in gold rates. It is clear that when the economic condition is better, then why should there be a need to worry a lot about insuring the future! In such situations, there is only a need to maintain equilibrium in the market.

What is the advice of experts?

Commodity experts at UBS Group have advised investors to exit this investment if they are in a tactical position. And if you have invested strategically, then do hedging in it. UBS Group estimates that gold in the international market can fall to $ 1600, while silver can fall to the level of $ 22.

If you have invested a lot in gold, then you have to sell gold a little and you can invest in platinum or other metals. During his interview, Dominic Schneider has also said that platinum may be a better investment in the precious metals sector due to the high industrial exposure.

The opposite is the prediction of other experts!

According to reports, other experts are more optimistic about gold and their prediction is opposite to that of UBS Group. Goldman Sachs predicts that gold prices will reach $2,000 by the end of the year as consumer and central bank purchases increase. Diego Parilla, fund manager of the Quadriga Igneo fund, believes that the consequences for Access Liquidity will be dire.

According to him, the asset bubble has been created due to low interest rates and when it bursts, it will be difficult for the central banks of the world to handle it. He says that in the next 3-5 years, gold will be at the level of $ 3000-5000 per ounce in the international market.

Also read: SBI reduced the interest rate on gold loan, now you can borrow up to 50 lakhs cheaply, this is the process to apply

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