UBS cuts 1-month gold forecast by 15 pct to $850/oz
LONDON, Aug 7 (Reuters) - Investment bank UBS (UBSN.VX) has cut its one-month gold forecast by 15 percent to $850 an ounce, from $1,000 an ounce, citing improving risk appetite, stronger equities and a firmer dollar.
On a three-month basis, it has cut its forecast to $900 from $1,050 previously.
"The fall in crude has seen a number of consequences that have undermined the short term argument for gold as a safe haven," UBS strategist John Reade said in a statement on Thursday.
He added that investors have become less risk averse, equities have moved higher, the dollar has regained some strength and commodity prices have fallen.
"Gold has succumbed to long liquidation with investors cutting positions on the Comex futures market... and some ETF redemptions have been noted over the past week or two," he said.
Gold should find good support around $850/oz and we have used this as guidance for our new one-month forecast, he said.
(Reporting by Jan Harvey; Editing by Peter Blackburn)
