UBS Analyst: “Gold Will Bottom Out Soon”

Amidst the sea of red ink, a lonely voice of optimism can be found. Giovanni Staunovo, an analyst at UBS, has stuck his neck out to predict that the slide in gold prices is temporary. He argues that the fundamental drivers for gold—central bank buying and eventual rate cuts—remain intact. “I would expect gold prices to bottom out soon,” he stated, offering a glimmer of hope to battered investors.
This contrarian view suggests that the current panic is an overreaction. While the “AI bubble” fears are valid, they do not necessarily mean the end of the world for all assets. Gold, in particular, serves a different master than Nvidia. If the tech bubble bursts, gold could actually rally as a safe haven once the initial liquidity crunch passes.
This perspective invites investors to look past the immediate volatility. If the Federal Reserve cuts rates later in the year, as UBS predicts, the dollar will weaken, and assets priced in dollars (like gold and Bitcoin) should rise.
The key is timing. Buying too early is painful, as the current drop shows. But for those with a long-term horizon, the dip in gold to $4,033 could represent a buying opportunity. It is a bet that the central banks will not let the system collapse and will eventually print money again.