According to UBS Wealth Management, the gold price may test support around 4,000 US dollars/ounce again in the short term, and the structural demand for buying on dips is expected to bottom out here. As the market revises expectations of the Fed's interest rate hike, the price of gold is expected to regain momentum towards the end of the year and continue until 2027. Looking at the medium to long term, industry insiders believe that the long-term logic of the central bank's purchase of funds and global de-dollarization has not changed due to this round of decline. Yu Zongliang, manager of Starstone Investment Fund, said that the long-term allocation value of gold is still high. The reason the price of gold is currently being suppressed is that interest rates on US bonds are relatively high, and the “hawkish” attitude of the Federal Reserve has exceeded the market's previous expectations. However, in the long run, with the US fiscal deficit continuing, the long-term support of gold will continue. The Southern Fund believes that the key to a steady recovery in gold prices is whether US inflation and employment data can continue to weaken, whether the pace of interest rate hikes by the Federal Reserve is slowing down, and whether US dollar and US bond yields can fall from high levels; if these suppressing factors ease marginally, there may be room for recovery in gold prices.

According to UBS Wealth Management, the gold price may test support around 4,000 US dollars/ounce again in the short term, and the structural demand for buying on dips is expected to bottom out here. As the market revises expectations of the Fed's interest rate hike, the price of gold is expected to regain momentum towards the end of the year and continue until 2027. Looking at the medium to long term, industry insiders believe that the long-term logic of the central bank's purchase of funds and global de-dollarization has not changed due to this round of decline. Yu Zongliang, manager of Starstone Investment Fund, said that the long-term allocation value of gold is still high. The reason the price of gold is currently being suppressed is that interest rates on US bonds are relatively high, and the “hawkish” attitude of the Federal Reserve has exceeded the market's previous expectations. However, in the long run, with the US fiscal deficit continuing, the long-term support of gold will continue. The Southern Fund believes that the key to a steady recovery in gold prices is whether US inflation and employment data can continue to weaken, whether the pace of interest rate hikes by the Federal Reserve is slowing down, and whether US dollar and US bond yields can fall from high levels; if these suppressing factors ease marginally, there may be room for recovery in gold prices.