According to UBS Investment Bank strategist Joni Teves, gold’s recent rally may have room to run even after reaching record highs.
Teves points to inflation dynamics as the central driver of further gains, highlighting the potential for newly imposed tariffs to act as a meaningful inflationary impulse. In her view, tariff-driven price pressures would create a supportive macroeconomic backdrop for gold, since higher inflation increases demand for assets perceived as a store of value. Rather than interpreting current levels as a market peak, she encourages investors to consider how evolving policy measures and trade costs could prolong upward pressure on gold prices.
Describing the market as in “unprecedented territory” for the metal, Teves signals a structural shift that may sustain bullish momentum for precious metals. This assessment reflects a combination of factors beyond tariffs alone—persistent inflation risks, central bank policy responses, and ongoing geopolitical and macroeconomic uncertainty—that together could keep gold attractive to investors seeking inflation protection and portfolio diversification.
For market participants, the implication is to look past short-term volatility and evaluate gold within a broader macro framework where tariff-induced inflation and other risk factors can feed into longer-term price support. While past performance is never a guarantee of future results, the strategist’s analysis suggests that current record levels do not necessarily mark the end of the rally, but could instead be part of a continuing uptrend driven by shifting inflation dynamics and policy developments.