Analyst: If tensions between the US and Iran ease, it could trigger a larger-scale profit-taking in the gold market.

DeepFlowTech · 2026-02-05T05:23:15+00:00

UBS Group's EFG International stated that gold prices face a correction risk, mainly due to recent market volatility and geopolitical factors. The appointment of the new Federal Reserve Chair could also reduce demand for gold.

DeepFlowTech

2026-02-05 05:23:15

Abstract generation in progress

Deep Tide TechFlow News, February 5th, according to Jin10 Data, UBS Group’s asset management arm EFG International believes that there are currently multiple factors that could lead to a further correction in gold prices. EFG senior economist GianLuigi Mandruzzato pointed out that the sharp fluctuations in gold prices on January 29th, when gold briefly touched $5,600 per ounce in the European market, highlight increasing risks of a correction. He stated that although the likelihood currently appears low, any easing of tensions regarding Iran could prompt investors to reassess their gold holdings. Additionally, Mandruzzato added that the appointment of the new Federal Reserve Chair—who is seen as independent from Trump and credible on inflation issues—is expected to boost investor confidence in dollar assets, thereby reducing demand for safe-haven assets.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.