Investors Question Gold's Safe-Haven Status as Price Decline Draws Attention

LootboxPhobia · 2026-03-17T14:14:08+00:00

UBS Group stated in its report that despite the pullback in gold prices, it remains optimistic about its potential as a safe-haven asset and investment tool, believing that factors supporting a rebound in gold prices still exist, and viewing any pullback as a buying opportunity. Geopolitical tensions and economic stimulus measures may drive gold prices to new highs.

LootboxPhobia

2026-03-17 14:14:08

Abstract generation in progress

Investing.com - The decline in gold prices has led investors to question whether this precious metal still deserves its reputation as a safe-haven asset, but UBS Group (UBS) stated in a report released on Tuesday that its core investment logic remains solid.

Get more gold research reports on InvestingPro

Gold prices have fallen from a high of over $5,400 in early March to slightly above $5,000 today, briefly breaking below this key level during Monday’s trading session.

UBS strategist Joni Teves said that the short answer to whether gold is still a safe-haven asset is yes. She believes that despite recent volatility, gold’s role as a diversification tool remains intact.

UBS believes that “the factors supporting a gold bull market still exist,” and increased investor allocations are expected to push “new all-time highs this year.”

Teves admits that the current environment makes the near-term outlook uncertain.

“Higher real interest rates and a strengthening dollar are creating resistance,” she said, adding that the market has been paying attention to the impact of rising oil prices on inflation and what this means for Federal Reserve policy.

However, she pointed out that this “is only part of the puzzle,” and that fiscal or monetary stimulus measures triggered by slowing economic growth “pose upside risks for gold.”

Geopolitical tensions also continue to support long-term demand. Teves said that ongoing global uncertainties “support strategic demand for gold as investors seek to hold more diversified portfolios.”

She reiterated that UBS views any pullback as a buying opportunity and maintains the view that gold should reach new highs this year.

The bank added that the broader precious metals sector remains stable, noting that silver, platinum, and palladium, despite facing industrial demand risks, have performed “quite resiliently.”

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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.

1 Likes