Source: Wall Street
Although the market expects gold prices to enter a period of consolidation, UBS believes that any price correction is an opportunity for investors to increase their holdings of gold, and the persistence of geopolitical risks could support the gold market in the long term.
The price of gold fell 2% in intraday trading overnight on April 23.Willycrasharcadegame.54% to 2330 per ounceWillycrasharcadegame.23 dollars.
The recent correction in gold prices has aroused market doubts. Will gold prices rise further after gold prices hit an all-time high this year?Willycrasharcadegame?
On April 19th UBS released a research paper entitled Global Precious Metals Review, pointing out that unless geopolitical risks escalate, gold could enter a period of consolidation.
In recent days, the price of gold broke through $2400 an ounce because of tensions between Israel and Iran, but the rise did not last.
In the short term, the market's short-term response to such geopolitical news is usually violent and unstable. The market is nervous about the uncertainty over the weekend, which may provide some support for gold prices in the short term.
UBS expects gold to enter a period of consolidation in the short term.
If geopolitical tensions ease, the focus of the gold market may turn to the consolidation period of gold prices. UBS points out that this phase may have begun in the past week.
If geopolitical risks escalate, it could increase the "safe haven" flow to gold. Continued geopolitical risk will eventually support demand for gold as investors may seek to diversify their portfolios and hedge against potential market instability.
Although some investors are worried about making a profit by selling gold prematurelyWillycrasharcadegameClosure, but given the sharp rise in gold prices, UBS believes market participants may eventually be inclined to sell some of their positions in order to lock in profits.
UBS stressed that although the available data do not show that gold trading is overcrowded, market positioning, that is, the overall position of investors, has become the focus of market participants. The data show that net long positions in gold have recently hovered near 12-month highs, while commodity trading advisers (CTAs) have also reached their largest long positions.
UBS believes that the healthy correction in gold prices shows that the market can form a supporting foundation at a higher level. This will help boost investor confidence in the long-term bull market in gold.
As a result, UBS maintains a bullish position on gold and believes that any price correction is an opportunity for investors to increase their holdings of gold.
Risk reminder and exemption clause
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