UBS has raised its average gold price forecasts, citing a mark-to-market revision and also expectations of a strong fourth quarter price environment.
The bank upped its 2011 average gold price to $1,665 per ounce from $1,500 in a note to clients.
UBS also increased its average gold forecast for 2012 to $2,075 per ounce from $1,380, and its 2013 outlook to $1,725 from $1,200.
"Our expectations for gold in 2012 and beyond are governed to a large extent by our expectations for US interest rates and the health of the global economy," the bank said.
The bank added that ongoing global macroeconomic upsets and the European sovereign debt crisis will boost consumer and investor confidence towards gold, making it increasingly used as the line of defence against additional negative market outcomes.
