By Rhiannon Hoyle ("UBS Lifts 2011 Gold Forecast 50% To $2,075/oz On Macro Fears," published at 0804 GMT, misstated the year in the headline.) LONDON -(MarketWatch)- UBS AG UBS +4.38% has hiked its gold forecast for next year by 50% to $2,075 a troy ounce, citing expectations that further global macroeconomic disappointments, European sovereign debt troubles, and low business, consumer and investor confidence will bolster demand for the precious metal as a "line of defense" against fresh market turmoil. The Swiss bank has also revised its expected average gold price for this year up to $1,665/oz, from $1,500/oz previously, ahead of a likely "strong fourth quarter price environment," it said. Its forecast for 2013 has been lifted significantly as well, and now stands at $1,725/oz--up 44% from a prior forecast of $1,200/oz. "Given the extraordinary events in financial markets over recent weeks, we re-visit our forecasts for annual gold prices. With the pool of competing asset alternatives sparse, 'new' money will likely flow into the gold market over the months ahead and into 2012, which has significant price implications," UBS said.

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