Experts expect rising prices for gold and silver despite the Fed's decision - UBS remains positive

Experts expect rising prices for gold and silver despite the Fed's decision - UBS remains positive

According to a report by www.deraktionaer.de, the gold price lost value at the beginning of the week after an interview with Fed Chairman Jerome Powell. Powell indicated that the Federal Reserve will cut interest rates more slowly and less aggressively than the market expected. This initially led to uncertainty regarding precious metals.

UBS, on the other hand, remains positive about gold and silver despite this news. According to Joni Teves, precious metals strategist at UBS, gold is expected to reach $2,200 by the end of 2024. This is based on the expectation that the Federal Reserve will cut interest rates, although the exact timing and extent are uncertain. In addition, higher volatility is expected in 2024, which increases the attractiveness of gold as a diversifier.

Investors should therefore start building an allocation to gold in an environment of macroeconomic uncertainty and geopolitical risks. Teves also noted that silver could also shine in a scenario where the Federal Reserve loosens monetary policy, as it tends to outperform gold. He therefore predicts a dramatic development for silver.

Despite the bumpy start to the year, DER AKTIONÄR also maintains its positive assessment of gold and silver, as the past has shown that there is rarely a second chance to get in once silver gets going.

Given these forecasts and assessments, it is likely that investors will invest more in gold and silver, which could lead to an increase in demand and thus an increase in the value of the precious metals.