Gold investors eye the next move by the Federal Reserve, with increased chances of a rally before the end of the year

(1) UBS precious metals strategist Joni Teves pointed out in a report that gold investors may have shifted their focus to the situation after the next action by the Federal Reserve. (2) She expects that the market has largely priced in rate hike expectations and will pay more attention to other reasons for buying gold, such as its appeal as a diversification tool and the continued solid demand for gold purchases from official sectors. (3) She added that India is about to enter its peak season for gold demand, while investment activity in China also appears to provide support for the gold market. (4) She believes that gold prices may remain volatile in the short term, but the possibility of further increases before the end of the year is growing. (5) She noted that even if the Federal Reserve raises interest rates in September, gold could still experience a "reflexive pullback," but this would not disrupt the overall recovery trend.