Analyst: Gold's pullback has temporarily subsided, optimistic target set at $4,700

ChainCatcher News, UBS analysts stated that the current correction in the gold market is only a temporary phenomenon, and gold prices are still expected to reach $4,200 per ounce; if geopolitical or market risks intensify, in an optimistic scenario, gold prices could even surge to $4,700 per ounce.

"The long-awaited correction in the market has temporarily subsided," UBS said in a research report released on Monday. "Apart from technical factors, we have not found any fundamental support for this sell-off."

The Swiss banking giant pointed out that "the weakening of price momentum has triggered a second round of decline in futures positions," but at the same time emphasized that the underlying demand for gold remains strong.

UBS analysts also cited the World Gold Council's "Q3 Gold Demand Trends Report," stating that the report confirms "the demand for gold purchases from central banks and individual investors remains strong and continues to heat up."