UBS Maintains 24% Upside Forecast for Gold

UBS's decision to maintain its 24% upside forecast for gold can be seen as a medium-term positive signal. However, short-term technical indicators are mixed: the RSI is at 42, in neutral territory; the MACD is negative and slightly below its signal line; and there has been a 1.4% decline in the last 24 hours. The fact that the price is well above the SMA20 and SMA50 (possibly a data error or a different scale) is noteworthy, but it indicates that short-term momentum is weak. Although the news is positive, the technical picture does not provide a clear buy signal; therefore, the impact may be limited to the upside. A slight upward movement can be expected in the 1-3 day horizon, but confidence is low.

UBS maintaining its 24% upside forecast for gold can be seen as a positive news flow in the short term. Technical indicators also support this view: the price is above the 20- and 50-day moving averages, the RSI at 57 is far from overbought territory, and the MACD is slightly above its signal line. However, the 2.65% rise in the last 24 hours may bring some risk of profit-taking in the short term. Nevertheless, the overall trend is upward, and the news could reinforce this trend. A moderate upward movement is more likely in the 1-3 day period.