Why Gold Is A Good Investment Right Now—And May Be Set For A New Record Price

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Gold is on the precipice of hitting its highest price on record

as investors turn to the safe-haven asset amid a rocky macroeconomic environment, and analysts believe the precious metal could have much more room to run—thanks in no small part to the potential recession looming ahead.

And the precious metal could soon soar far past its all-time high, UBS’ global chief investment officer Mark Haefele wrote in a Tuesday note to clients, setting a $2,200 target for gold by next March, indicating an about 8% upside. A weakening U.S. dollar, historic stress in the banking sector, the standoff with the federal government’s debt ceiling, easing expectations about interest rates and the rising likelihood of a recession all bolster gold prospects, according to Haefele.

“Gold is typically driven by macro variables rather than supply [and] demand,” says UBS analyst Cleve Rueckert, explaining that the surge in the unique commodity’s price is unique as it has little to do with its use case. So how can you get gold exposure? In addition to buying physical gold or futures contracts for the metal, investors can also purchase exchange-traded funds holding the commodity or buy shares of public companies who mine the metal,Gold mining stocks have surged this year: Shares of Gold Fields , Kinross Gold , Franco-Nevada , Royal Gold and Barrick Gold have each outperformed the S&P 500’s 8% gain.The “plethora of risk” in the U.S.

 

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