Gold prices fell dramatically after the recent U.S. elections, marking their worst post-election week since 1980. This sharp 6% drop in one week surprised many investors and raised critical questions about the causes.
UBS analysts identified three major factors contributing to this dramatic sell-off:
Despite recent pessimism, UBS maintains a bullish long-term outlook for gold. Ongoing geopolitical tensions and dedollarization trends among central banks may support demand in the future. UBS projects gold could reach $2,900 per ounce by the end of 2025.
UBS recommends a tactical approach for gold investors. Buying opportunities arise when prices dip, especially near the $2,500 support level. Maintaining a 5% allocation in a balanced portfolio can hedge against potential economic disruptions.
Gold's recent fall highlights how economic optimism can overshadow its safe-haven status. Yet, as uncertainties persist, this precious metal remains a valuable strategic asset.
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Gold prices plunged post-election, marking their worst week since 1980. Learn why this drop happened and the long-term outlook.
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