UBS Predicts Continued Pressure on U.S. Dollar
Global investment bank UBS has forecasted ongoing pressure on the U.S. dollar due to various economic factors. Factors such as inflation concerns, uncertainty surrounding the Federal Reserve’s monetary policy, and geopolitical tensions are all contributing to the weakening of the dollar.
Further Gold Price Increases Expected
UBS also anticipates that the price of gold will continue to rise as a result of the weakening dollar. Gold is often seen as a safe-haven asset during times of economic uncertainty, and investors tend to flock to it as a store of value in turbulent times. With the dollar under pressure, gold becomes an attractive investment option for those looking to hedge against currency depreciation.
Insight on Gold as a Safe-Haven Asset
Gold has long been considered a safe-haven asset due to its intrinsic value and lasting appeal as a form of wealth preservation. Its scarcity and tangible nature make it a reliable store of value in times of economic instability. As central banks around the world continue to navigate the challenges posed by the pandemic and its aftermath, gold remains a valuable asset for investors seeking stability in their portfolios.
