UBS reduced its 1-month and 3-month gold and silver price targets to reflect the recent decline in the precious metals.
For gold, the firm lowered its 1-month forecast by 9.0% to $1,775 per ounce and its 3-month by 7.1% to $1,950 per ounce.
UBS also cut its 1-month silver estimate by 30.4% to $32.00 per ounce and its 3-month target by 30.0% to $35.00 per ounce.
In a note to clients, UBS analysts wrote that “Our core bullish view on gold remains unchanged and the light nature of [speculative] positioning is a big positive, but our previous one-and three-month [prices]…are overly ambitious given the recent slowdown in market momentum.”
“The ‘clean’ nature of current spec positions, along with physical and long-term demand, is creating a very healthy foundation for gold to climb from,” the firm added. ”We expect physical demand to be quite decent in the coming days, barring China where markets are closed for the week, but buyers there should return with vigor after the holidays.”
Canaco Extends Gold Mineralization at Magambazi
* Hole 178 intercepted 9.3m of 11.6 grams per tonne (g/t) gold on the Magambazi Main zone.
* This intercept builds as a 70-metre depth extension of the previously reported intersection in hole 218, which graded 9.1m of 7.62 g/t of gold in the Magambazi Central zone.
