UBS is predicting a ‘major gold rally’ this year

February 25, 2013, 9:55 AM

Will the U.S. economy make or break commodities?

That was the question posed by UBS in a note to investors on Monday, as gold and other precious and base metals enjoyed a snappy little recovery. April goldGCJ3 +1.13% was up nearly $20 an ounce. Gains were helped in part by a globalequities rally that looked to be taking hold Monday. Read more on gold trading.

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So, the conclusion from UBS?  As analyst Julien Garren explains in a note, the role the U.S. economy plays in influencing commodity prices is a delicate dance, but providing investors can be patient, it’s a winner for gold. Part of the selloff for gold last week was blamed on Fed minutes that  triggered worries the central bank would wrap up its big asset-buying program faster than expected. That means holding gold as an alternative to the U.S. dollar, seen as vulnerable to the Fed’s stimulus policies, is less urgent.

more...  http://blogs.marketwatch.com/thetell/2013/02/25/ubs-is-predicting-a-major-gold-rally-this-year/