UBS Sees Buying Opportunity in Gold's Latest Pullback
Gold prices have rebounded towards $4,401 an ounce after Tuesday's 1.61% decline, as a softer US Dollar supported buying ahead of this week's US inflation figures.
UBS favours using the recent falls to build exposure to gold, even as it expects two Federal Reserve rate increases in 2026.
The bank notes that central-bank purchases are running at roughly twice the pace of the preceding decade, with an average of around 1,000 tonnes annually over the past four years.
China added nearly 20 tonnes in July, its largest monthly purchase since October 2023, according to UBS. Central bank demand remains robust, supported by reserve diversification and a long-term desire to reduce exposure to US dollar assets.
UBS believes that investors with an affinity for gold can consider using price weakness to build a mid-single-digit strategic allocation.