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UBS economist foresees gold’s price rising to $2,300 per ounce in the near-term in the event of an escalation of geopolitical tensions. 

The yellow metal is trading near $2,000 at press time. Prices fell from $2,075 to $1,863 in the four days to Aug. 12, as the US treasury yields recovered from record lows. 

However, despite the recent pullback, UBS is retaining its year-end forecast of $2,000 per ounce.

Indeed, with the Federal Reserve continuing to pump unprecedented amounts of liquidity alongside an uptick in inflation, a big pullback in gold looks unlikely.