UBS: Expect gold prices to gradually decline by the end of the year and continue to fall in the coming years

UBS precious metals strategist Joni Teves recently warned that the prolonged U.S.-Iran conflict and persistently high oil prices may mean that the gold rally is about to end. In an explanation during her latest interview, she said the market currently expects the Federal Reserve to keep interest rates unchanged this year, which means there is less likelihood that gold prices will rise: “Investors may be witnessing the end stage of a gold bull market.” “We believe the gold cycle should be broadly in sync with the Federal Reserve cycle, so we expect the gold price to gradually decline by the end of this year, and that gold prices will fall in the coming years.” She added. According to Teves, during periods of market volatility, gold prices often rise during conflicts because traders flock to safe-haven assets. But gold prices usually have an inverse relationship with Federal Reserve interest rates—when the central bank decides to cut rates, the gold price will rise. (China Securities Journal)