UBS say to buy gold on dips - "hedge against tail risks attractive"

A quick one from UBS on gold, via eFX

While maintaining a constructive outlook on gold, UBS also recognizes that the road ahead is unlikely to be a straightforward journey.

"Fluctuations in market expectations for a Fed move are likely to continue driving gold prices and vulnerability to US data persists. Gold weakness could resume up ahead as a rate hike starts to get priced in again," UBS argues.

"However, we would view these dips as opportunities to regain gold exposure at better levels. Holding gold as a hedge against tail risks would be attractive for longer-term investors, especially against the backdrop of broader macro uncertainty and potentially lower real rates than initially anticipated," UBS advises.