XAU/USD: gold will soon offer a nice buying opportunity on the market (UBS)

UBS believes that the recent fall in the price of gold offers a good opportunity to buy it.

"Gold fell sharply on Tuesday, moving closer to the support zone at 1214/1195.

The Tuesday move is clearly stretched, and as we are oversold in the short term, gold could form a short-term trough and rebound in Q3, where from a fundamental point of view, gold could benefit from an improved sense of risk.

We seek to buy gold on a continuation of the decline towards 1200 and/or on a rebound above 1236."