Swiss bank advice to investors .. “buy gold now!”

The Swiss investment bank UBS advised investors around the world to buy gold at that time, with expectations of a new wave of volatility in the markets against the background of the uncertainty in global markets due to the Corona pandemic.

In addition to the uncertainty surrounding the US election scene, the result of which is widely seen as an engine for the markets in the coming period.”We prefer gold … We believe that gold will reach levels of $ 2000 an ounce by the end of this year,” Kelvin Tay, director of wealth management at the Swiss bank, said in an interview with CNBC.

Tai added, “In times of uncertainty about the US elections and the Corona pandemic, gold is a very ideal hedging tool, and its recent review represents a good opportunity for investors who want to enter and invest in the precious metal … These prices represent a bottom in which to enter and build positions that will generate a good return.”

Earlier this year, gold prices exceeded levels of $ 2000 an ounce for the first time in its history, but it has witnessed declines in recent times with profit-taking and liquidation in the market to cover positions in the stock markets that witness sharp fluctuations.Tai added that the low interest rate environment will play a decisive role in making gold attractive to investors at that time, as the returns provided by other investment tools in the stock portfolio markets decline.

He said, “If interest rates remain low for a long time, the opportunity cost of owning gold (an asset that does not provide fixed returns) will be very low, with the fact that investors are constantly looking for assets that provide a return. If other assets do not provide the desired returns, then investing in Gold would be the best solution. ”

And earlier last month, the US Federal Reserve kept interest rates unchanged and hinted to continue expansionary policies and keep interest rates at low levels until 2023, as the Bank of England, the British Central Bank, hinted, for the first time in its history, to the possibility of resorting to rates. The negative benefit of stimulating the economy, which has been severely affected by the outbreak of the mysterious virus.

Tai also advised investors looking for good returns to invest in Chinese bonds during the coming period as it prepares to join the FTSE Russell government bond index by next October, which would allow billions of dollars in inflows into China.

He explained that the yields of Chinese bonds amount to about 2.5%, which is better than their counterparts in America, which hover around the level of 0.6%, and in Europe, where the returns are in the negative range.

“These are very good returns for government bonds with high quality and strong financial positions,” he said.