UBS Sees Gold Testing $4,000 Again as Central Bank Buying May Support Prices

UBS sees gold as potentially revisiting $4,000 an ounce, with dip-buying and central-bank demand expected to help establish a floor even as higher U.S. Treasury real yields and a firmer dollar pressure prices.

The bank projects annual central-bank gold purchases of 750 to 1,000 metric tons. Buyers stepping in when prices fall are also expected to support the market.

Rising real yields and a stronger dollar remain pressures on gold, while continued central-bank buying and dip-buying demand are expected to provide support.