UBS Urges Selling Gold Puts Below $4,700 and Silver Below $65 as Volatility Hits 70%
UBS projects gold rising to $6,200/oz over coming months and advises clients to sell downside protection below $4,700/oz one-month puts, reflecting confidence in limited near-term downside risk. It recommends similar strategies in silver, selling one-month put strikes below $65/oz as volatility surges to around 70%.
1. UBS Reiterates Bullish Gold Outlook
UBS strategists target a gold price of $6,200/oz over coming months and recommend selling one-month put options struck at $4,700/oz, reflecting their view that lower interest rates, central bank purchases and a weaker dollar will maintain price support.
2. Silver Strategy and Elevated Volatility
UBS advises clients to sell one-month silver puts with strikes at $65/oz as options volatility jumps to roughly 70%, viewing downside risk as limited given robust economic growth expectations and currency debasement concerns.
3. Macroeconomic Support
Lower nominal and real interest rates, global debt concerns and ongoing central bank demand underpin UBS’s constructive outlook on both gold and silver prices.