Analysts at UBS reiterated their positive view on gold, saying dips should be bought.
- Gold dipped late last week on China's pause in buying in May, the strong NFP, strong earnings, higher US Treasury yields and higher USD
- UBS point to a sign of weakness in the jobs report, the jobless rate climbing to 4% & participation coming off
On positive factors:
- Say China's gold buying may be underreported, and other central banks continue to scoop it up - total demand is seen reaching 950-1,000 metric tons in 2024
- UBS expect the FOMC to indicate two rate cuts ahead for this year in today's dot plot
- Ongoing geopolitical risks and the upcoming U.S. election are further reasons to buy
