There is a “positive sentiment shift taking place amongst U.S. investors towards gold,” Tully and Teves said. “This marks quite a sea-change in attitude and, in turn, a sizeable potential boost for the metal.”
While safe-haven and Chinese demand will help gold prices, the analysts warn against being too optimistic.
“Although we feel gold isn’t deserving of a price tag north of $1,400, a price sub $1,200 seems similarly undeserved,” the UBS analysts added. “Effectively we see gold higher, but within a range.”
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Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of GLD.