As Fed Reaches for Trigger, UBS Says Gold Set to ‘Roll Over’
- ‘We’re going to get two hikes,’ says bank’s Dominic Schnider
- Bullion has dropped in May amid U.S. rate hike speculation
UBS' Schnider: Dollar Rally Isn't Over Yet
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Gold’s at risk of taking a tumble as a resurgent dollar erodes demand with the Federal Reserve opting for not one, but two rate increases before the year-end, according to UBS Group AG’s wealth-management unit, which forecasts that bullion may drop back to $1,150 an ounce.
“Definitely, second half of the year, we’re going to get two hikes -- that’s not fully priced in, and that’s why most dollar strength’s to come,” Dominic Schnider, head of commodities and Asia-Pacific foreign exchange at the unit in Hong Kong, said in an interview on Bloomberg TV. Gold, which traded at $1,229.79 on Thursday, was last below $1,150 in February.