UBS Just Slashed Its Gold Price Target, Cites 'Material Erosion' In QE Expectations

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Photo: Flickr / hto2008

Some firms like Goldman Sachs, Morgan Stanley, and Macquarie have maintained a bullish tone on gold.UBS, which previously had a $2,050/oz 2012 target on gold, is now saying that call was too aggressive.

This morning, the firm slased its target to $1,680/oz, which is 18 per cent lower than its previous call.

From MarketWatch:

“A continuing U.S. recovery, material erosion in Fed quantitative easing expectations, rising Treasury yields, a stronger dollar and questions surrounding the durability of the Fed’s low-until-2014 rate pledge all combine to act as the prime culprits that cause us to pare back, for now, our previously aggressive call,” said UBS analyst Edel Tully.

SEE ALSO: Morgan Stanley: This Is What All Of The World’s Commodities Will Do In 2012 And 2013 >

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