UBS fancy gold higher into year end.
- Dollar strength likely weighing on it
- more importantly it is the repricing of Fed cut expectations that is causing gold to test support below $1500
But:
- we think that risks remain skewed to the upside between now and year end
- market's Fed expectations have now been adjusted, allowing space for the market to react more positively to any dovish developments. Our Rates Strategy team notes that it only takes two FOMC members to move the median dot to suggest one more cut this year.
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Chart update, been a ride ….
