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<Research>UBS Remains Bullish on Gold, but Prefers to Watch from Sidelines for Now
Recommend 8 Positive 24 Negative 9 |
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Gold prices have once again reached a historical high, with a single-day increase of over 5%, approaching US$5,600 per ounce, UBS Global Research's precious metals strategist, Joni Teves, said. The strong momentum since December 2025 has accelerated further in 2026. UBS believed that the constructive narrative for gold is more compelling than ever, and remaining long remains the correct strategy, in its view. There are many reasons to support a strategic allocation to gold, and indicators show that investors on average still have room to increase holdings. However, the broker believed that short-term price trends are starting to become excessive, with the risk of a medium-term correction rising. The gold-silver ratio has significantly decreased, highlighting that as investors turn to hard assets, diversification interest is spreading to other precious metals. Short-term speculative interest may also be increasing, which will create more volatility. Therefore, UBS was cautious about chasing the market at this time, especially for those looking to put on new positions. So, while the strong rise in gold and precious metals suggests a market filled with 'fear of missing out,' the broker believed that sometimes acknowledging 'the joy of missing out is healthy, at least in the short term. AASTOCKS Financial News Website: www.aastocks.com |
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