“When I think about what would I buy in the right here and now, I would be buying gold, prices would appreciate over three to six months,” told Bloomberg from the expert of financial – Wayne Gordon
Wayne Gordon is the executive director for commodities and foreign exchange at UBS Group AG’s wealth-management unit.
Bullion is set for back-to-back weekly losses for the first time since September after the dollar hit a record. Because of deep losses in risk assets, some investors have been forced to sell gold to raise cash.
According to Bloomberg, a similar pattern loss at times of extreme market stress was seen in bullion at the onset of the global financial crisis in late 2008, before it went on to peak in 2011.
“Gold provided what it should during times of crisis. It is a form of insurance to cash in when liquidity was required. It’s one of the first assets to be cashed in when leverage is reduced. Long-term investors not subject to margin pressures will be rewarded owning gold at this time” he said.
Gold traded 1.6% higher at $1.484,86 an ounce at 6:32 a.m. in London as the Dollar Spot Index fell after an eight-day rally. The bullion is down 2.3% this week after an 8.6% fall last week, the most since 1983. Earlier this month, it topped $1,700 an ounce to hit the highest level since 2012
“Given additional quantitative easing from central banks, you should see a weaker dollar over the next 12 months, it will be a potent power for gold,” he said, adding.