Gold May Peak at $1,300 an Ounce Next Year, UBS AG Says

By Glenys Sim

Dec. 3 (Bloomberg) -- Gold may reach a peak of $1,300 an ounce next year as more investors purchase bullion to preserve wealth against a declining dollar, UBS AG said.

Central bank purchases will also support bullion prices, Dominic Schnider, head of commodities research at the bank’s Wealth Management Research, said today.

“We note the tendency that could see central banks ending up net buyers of gold, after years as net sellers,” he said. “This has changed the supply-demand balance considerably.”

To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net