UBS says gold should also benefit from lower real rates and ongoing geopolitical risks. Lower interest rates typically benefit non-interest-bearing bullion.
UBS:
- “our target remains USD 3,700/oz by end-June 2026”
(ps there is more on UBS’ FOMC outlook here: UBS tips a Fed ‘four-peat’: four straight rate cuts at the next four meetings)
Meanwhile, on a shorter term view, ANZ say to watch the NFP:
- precious metal rally supported by expectations of Federal Reserve cut at its September meeting
- “This week’s U.S. jobs report will be key to whether the current rally is sustained”
(also ps. this time previewing this week’s NFP: Friday’s US jobs report (NFP) is critical for the short-term direction of the US dollar)
This article was written by Eamonn Sheridan at investinglive.com.
