UBS: Ongoing geopolitical conflicts combined with the Federal Reserve maintaining interest rates suggest that the gold bull market may be nearing its end.

GateUser-bd883c58 · 2026-04-06T21:46:48+00:00

Ask AI · Why might the Federal Reserve keeping interest rates unchanged end the gold bull market?According to UBS, its precious metals strategist Joni Teves recently warned that the prolonged U.S.-Iran conflict and persistently high oil prices could signal the end of the gold rally.She stated that the current market expects the Federal Reserve to keep interest rates unchanged this year, which means the likelihood of gold prices rising is low, "investors may be witnessing the end of the gold bull market.""We believe the gold cycle should roughly align with the Federal Reserve cycle, so we expect gold prices to gradually decline by the end of this year, and to trend lower in the coming years," she added.Teves also mentioned that under normal market logic, during periods of market volatility, traders tend to flock to safe-haven assets, and during conflicts, gold prices often rise accordingly. However, gold prices typically have an inverse relationship with Federal Reserve interest rates, meaning when the central bank decides to cut rates, gold prices tend to go up.

GateUser-bd883c58

2026-04-06 21:46:48

Ask AI · Why could unchanged Federal Reserve interest rates end the gold bull market?

According to a report from UBS, its precious metals strategist Joni Teves recently warned that the protracted U.S.-Iran conflict and persistently high oil prices may mean that the gold rally is about to end.

She said that current market expectations are that the Federal Reserve will keep interest rates unchanged this year, which means there is less chance of gold prices rising: “Investors may be witnessing the end phase of the gold bull market.”

“We believe the gold cycle should broadly align with the Federal Reserve cycle, so we expect that by the end of this year the gold price will gradually fall, and in the coming years the gold price will decline.” She added further.

Teves also noted that under conventional market logic, during periods of market volatility, traders typically flock to safe-haven assets. During conflicts, gold prices often rise accordingly, but gold prices usually have an inverse relationship with Federal Reserve interest rates—when the central bank decides to cut rates, the gold price tends to rise.

Statement: The market is risky; investment requires caution. This article is generated by AI based on third-party data for reference only and does not constitute personal investment advice.

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