UBS is bullish on gold, with $4,000 as a key support level.

(1) UBS expects that gold may once again test the $4,000 per ounce level, but believes that strong buying on dips will provide underlying support. (2) Despite rising US real yields and a stronger US dollar, central bank gold purchases and persistent debt concerns continue to support gold prices. (3) UBS forecasts that the annual global central bank gold purchases will reach 750 to 1,000 tons. (4) Going forward, attention should be paid to the degree to which US real yields and the US dollar suppress gold prices, as well as whether the pace of central bank gold purchases meets expectations. If buying on dips continues to enter the market, the downside support for gold prices may gradually strengthen.