More from FXstreet.com

Forex Flash: ‘Expect gold to continue under performing’ - UBS

By FXstreet.com,  January 08, 2013, 01:20:00 AM EDT

FXstreet.com (San Francisco) - UBS FX strategist, Gareth Berry says in a research note: "Gold's correlation to risk is once again neutral: investors want to put cash to work, but by definition 'to work' means earning total returns and most of this is expected to come from coupons or dividends rather than underlying FX gains."

Berry adds: "With the prospect of 'marginal policy' from the Fed becoming more distant, gold's negative carry has started to undermine performance."

Berry concludes: "However, in the short-term, as long as carry demand remains dominant, expect gold to continue underperforming its carry-paying FX peers."




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

Referenced Stocks:



Latest News Video

Apple Tax Case Is Toxic Political Issue
Apple Tax Case Is Toxic Political I...
Losing a Daughter to Oklahoma's Tornado
Losing a Daughter to Oklahoma's Tor...
Fine Dining Goes to New Heights - 180 Feet Up
Fine Dining Goes to New Heights - 1...
China Tea Leaf Index: A Double Property Bubble
China Tea Leaf Index: A Double Prop...


Sign-in
Existing NASDAQ.com member? Log in here.

By signing into to the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.

From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.44 0.07  0.52%
F $ 14.95 0.10  0.66%
CLWR $ 3.40 0.14  4.29%
SIRI $ 3.515 0.02  0.43%
MSFT $ 34.85 0.23  0.66%
CSCO $ 24.01 0.07  0.27%
MRK $ 47.33 2.12  4.69%
PFE $ 28.78 0.08  0.28%