Gold prices are expected to rebound after short-term adjustments, with institutions optimistic about the $4,200 level.

UBS Group’s research team recently released an analysis suggesting that the current price correction in the gold market is a short-term phenomenon, and in the medium term, gold prices are expected to rise to $4,200 per ounce. If geopolitical tensions worsen or systemic risks emerge in the financial markets, gold prices could even surge to a higher level of $4,700.

According to the research report, although gold has recently faced technical pressure leading to a price decline, this downward trend is not supported by the market’s fundamentals. In other words, the current sell-off lacks substantial reasons and is merely a short-term technical fluctuation.

From the supply and demand perspective, the basic demand for gold remains strong. UBS pointed out that the decline in price momentum has led to a new round of position reductions in the futures market, but this does not change gold’s appeal as a safe-haven asset. Especially, the demand for gold from global central banks and individual investors remains relatively high.

Data from the World Gold Council’s Q3 demand trend report shows that both official institutions and retail investors are increasingly eager to allocate assets to gold. This sustained demand provides a stable support foundation for gold prices, making short-term market adjustments an even better entry opportunity.

From a broader perspective, technical corrections are often part of the process of market re-establishing consensus. In this context, gold’s role as a traditional safe-haven tool remains unchanged, and its long-term appreciation potential continues to be worth attention.