Gold Capped As Few Investors "Want To Be Heroes"-UBS
Not only is gold's behaviour, as a hybrid between a safe
haven and risk asset, making it a difficult short-term trade, capping gains,
but the market is likely to struggle to push significantly higher as investors
choose the relative safety of the sidelines heading into year-end, says UBS.
"Year-end is approaching and few investors want to be heroes; they are either
trying to protect whatever profits have been made this year or limit their
losses," says analyst Edel Tully. Deleveraging and funding pressures are also
keeping investors "fearful of a replay of 2008... [which] is not a conducive
environment for significantly--and sustainably--higher gold prices in the short
term," she adds. Spot gold flat at $1,746/oz.
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