UBS on gold … prices managing to hold above the $1280 support area is encouraging

Author: Eamonn Sheridan | Category: News

This snippet from UBS on gold seems particularly pertinent given where the gold price is as I post.

  • we think near-term pressure on gold is understandable
  • prices managing to hold above the $1280 support area is encouraging
  • this consolidation as an opportunity to gradually build a strategic position in gold
  • But for now, the extent of the dovish shift in Fed expectations has made gold vulnerable to improvement in the data during a time when physical markets tend to be quieter. 
More: 
  • physical demand out of China has been weak this year
  • interest out of India has been resilient
  • Central bank activity has been another source of support for gold - strong net buying from 2018 has extended into this year
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Daily chart :

UBS on gold price chart
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