In a note, Heng Koon How of UOB’s Global Economics & Markets Research predicts that the physical bullion short squeeze would push gold beyond $3,000/oz. “Trade tariff uncertainties have resulted in a strong and sudden shipment of gold bullion back into COMEX and the U.S., triggering a global short squeeze in gold,” states the head of Markets Strategy. He adds that the primary factors that are now driving gold’s price higher, such growing apprehension about a slowdown in GDP, are still in place. In recent times, UOB has increased its gold estimates to $2,900/oz from $2,800/oz for the second quarter, $3,000/oz from $2,900/oz for the third quarter, and $3,100/oz from $3,000 for the fourth quarter. Spot gold, at $2,908.57/oz, has barely moved.
