• Gold prices have slipped from a year-end rally so far in 2024 — but the "power of the Fed's policy pivot should not be underestimated," according to UBS.
  • Cooling interest rate expectations have contributed to recent weakness.
  • Analysts at Scotiabank on Monday lifted their 2024 forecast for gold.
Three 1kg gold bullion bars worth over 155,00 GBP lay on the counter in a gold dealers in Birmingham's jewelry quarter on Dec. 13, 2023 in Birmingham, England. 

Gold prices could close the year as much as 10% above current levels on the back of potential interest rate cuts, UBS strategists said, despite declines at the start of 2024.

A UBS note on Friday described recent price moves as "minor" in the context of the precious metal's 15% climb through 2023 and said the "power of the [Federal Reserve]'s policy pivot should not be underestimated."