UBS Slashes Gold Price Forecasts Amid Fed Delay
Swiss banking giant UBS has revised its gold price projections downward, citing a shift in expectations regarding the Federal Reserve’s monetary policy. With stubborn inflation data forcing markets to price in a more hawkish stance, the anticipated timeline for U.S. interest rate cuts has been pushed back. Higher rates generally diminish the appeal of non-yielding bullion, prompting analysts to lower their outlooks as the opportunity cost of holding gold remains elevated in the current high-rate environment.