Gold prices have retreated due to higher US real yields and a strong dollar. UBS views this as a temporary consolidation and maintains a positive outlook, advising investors to treat current levels as a buying opportunity.
Key Takeaways
- 1.Gold's recent price decline is a result of higher real yields and a firmer US dollar, increasing the opportunity cost of holding the metal.
- 2.UBS remains constructive on gold over the next 12 months, viewing current weakness as a strategic entry point for underallocated investors.
Table of Contents
- Higher real yields and a stronger USD have weighed on gold
- But the recent weakness looks more like a reset than a broken investment case.
- So we would treat near-term weakness as a portfolio-building opportunity.
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Authors
Dominic SchniderGiovanni StaunovoJon GordonChristopher Swann
Securities
XAU
Themes
Central Bank PolicyGeopolitical riskInflationary pressures
Regions
GlobalUnited StatesIran