UBS Warning: Gold Bull Market May Be Coming to an End

BlockBeats News, March 31st, a strategist from UBS said that the prolonged Iran conflict and high oil prices may signal the end of the gold rally.

The Swiss bank's precious metals strategist Joni Teves said in an interview last Friday that investors may be witnessing the final stage of the gold bull market. "We believe that the gold price cycle is broadly in line with the Fed's policy cycle, so we expect the rally to gradually fade by the end of the year, with the gold price consolidating at lower levels over the next few years," she said.

Teves said that UBS's base case expectation is that after a period of consolidation, with ongoing fund inflows, the gold price will hit new highs later this year. "However, it should be noted that the ongoing Middle East conflict could lead to significant changes in the macroeconomic outlook and policy expectations, thereby altering the medium- to long-term trajectory of gold prices." (Jinse)