Mood among gold investors appears to be to buy the dip

In light of last week’s plunge and subsequent rebound in gold, UBS wrote in a note to clients that “the mood among gold investors appears to be to buy the dip rather than chase the market, which is understandable given last week’s volatility.”

The firm went on to say that the “violent sell-off hasn’t done any lasting damage to gold, and the reasons investors bought gold in recent months remain valid.”

As a result, UBS reaffirmed its one-month gold price target of $1,950 per ounce and its three-month forecast of $2,100 per ounce.