UBS is telling clients to sell downside protection in both gold and silver, signaling confidence that prices won't fall below key support levels despite current geopolitical tensions. The bank, led by strategist Dominic Schnider, maintains a bullish outlook for gold, targeting a price of $6,200 per ounce over the coming months. This view is driven by expectations of lower interest rates, a weaker dollar, and ongoing central bank demand. Rather than positioning for a decline, UBS prefers strategies that profit if prices remain above $4,700 per ounce over the next month, making options-based downside protection more attractive due to elevated volatility. A similar bullish stance applies to silver, with UBS citing supportive macroeconomic drivers like lower interest rates, global debt concerns, and robust 2026 growth expectations. Selling downside protection through put options allows investors to collect premium income while betting prices stay above $65 per ounce.

This strategy reflects confidence in silver's fundamental strength despite market volatility. The recommendations highlight how geopolitical uncertainty is reshaping hedging strategies in precious metals markets, with UBS positioning itself as a key advisor navigating these turbulent conditions.