UBS: Low probability of a change in the Chairman of the Federal Reserve, the US dollar is expected to stabilize after a recent decline.

"We still believe that the possibility of a change in the Federal Reserve Chairman is low." According to the latest views from the investment office of UBS Wealth Management, at a time when people are concerned about the sustainability of the US fiscal policy, inflation, and the US dollar as a store of value, this may prompt investors to demand a higher risk premium for US government bonds. Investors are advised to closely monitor Powell's upcoming speech to understand if there have been any changes in the Fed's position. UBS predicts that the Fed will cut rates by a total of 100 basis points starting in September, and the US dollar will stabilize after its recent decline. As interest rates fall, focus should be placed on more sustainable sources of income, particularly through the allocation of high-quality and investment-grade bonds. Gold will also benefit from uncertainty surrounding the Fed's independence, persistent investment and central bank demand, and expectations of a decrease in real interest rates, reiterating UBS's year-end target price for gold around $3,500 per ounce.