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A Swiss bank advises investors to buy gold now

By Marwa Mahmoud

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

In addition to the ambiguity of US election scene, the result of which is widely seen as an engine for the markets in the coming period.

Earlier this year, gold prices surpassed 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.

Swiss Bank Wealth Management Director Kelvin Tay said that the low interest rate environment will play a crucial role in making gold attractive to investors at that time as the returns offered by other investment tools in the portfolio markets decline.

 Earlier last month, the US Federal Reserve kept interest rates unchanged and hinted at continuing expansionary policies and keeping interest rates at low levels until 2023,

The Central Bank of England, for the first time in its history, hinted at the possibility of resorting to negative interest rates to stimulate an economy that has been severely affected by the outbreak of the mysterious virus.

Tay also advised investors looking for good returns to invest in Chinese bonds during the coming period, which would allow billions of dollars in flows to 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, which have high quality and strong financial positions,” he said.