The team of editors at UBS, a leading global financial services firm, is suggesting that investors should consider buying gold when prices dip instead of selling. Recently, the price of gold dropped by more than $80 per ounce due to strong U.S. payroll and earnings data, along with an increase in the 10-year U.S. Treasury yield and the U.S. dollar index, as outlined by UBS. Despite the positive payroll data, there were indications of economic weaknesses, such as a 4% unemployment rate and decreased labor force participation, the team mentioned, pointing out that the Federal Reserve is expected to signal two rate cuts in 2024. Given the ongoing geopolitical risks and the approaching U.S. election, UBS recommends maintaining approximately 5% of gold in a balanced portfolio denominated in USD to navigate through uncertainties.
