Institution: Gold price may test the $4,000 support again in the short term, while the medium- and long-term support logic remains unchanged

(1) UBS Wealth Management believes that in the short term, gold prices may once again test support near $4,000/oz, and structural demand for buying on dips is expected to form a bottom here. As market expectations for Federal Reserve rate hikes are revised downward, gold prices are likely to regain momentum near the end of the year and continue this trend into 2027. (2) In the medium to long term, industry insiders believe that the long-term logic of central bank gold purchases and global de-dollarization has not been changed by the recent decline. (3) XingShi Investment fund manager Yu Zongliang stated that the long-term allocation value of gold remains high. The current pressure on gold prices is due to high US Treasury yields and the Federal Reserve’s “hawkish” stance exceeding market expectations, but in the context of ongoing US fiscal deficits, long-term support for gold will persist. (4) Southern Fund believes that whether gold prices can stabilize and rebound mainly depends on whether US inflation and employment data continue to weaken, whether the Federal Reserve slows the pace of rate hikes, and whether the US dollar and US Treasury yields can retreat from high levels. If the above-mentioned pressures ease at the margin, gold prices could have room for recovery.