Buy gold near US$1,200 an ounce: UBS Wealth

Singapore

GOLD will probably trade in a range of US$1,200 to US$1,300 an ounce in the short term as the metal tracks US real interest rates, according to UBS Group AG's wealth management unit.

"We're not saying we have a bullish bias; we're not saying we have a bearish bias," Wayne Gordon, executive director for commodities and foreign exchange, said in an interview on Tuesday. "We're saying that tactically, people should be buying it somewhere near US$1,200 and selling it again somewhere near US$1,300, and it's because we have a view that real rates go sideways. So the pickup in nominal rates will be equally matched by the pickup in inflation."