Ahead of the Federal Reserve's interest rate decision, UBS is closely monitoring retail sales and industrial production data, considered "horror data," as weak figures could influence the Fed to cut the federal funds rate by 50 basis points rather than 25. UBS states that US inflation has eased to a level allowing for interest rate cuts. The institution outlined their "base case expectation" of a 100 basis point rate cut for the remainder of this year and another 100 basis point cut in 2025. UBS adds that as the pace of rate cuts accelerates, the US dollar will weaken further, pushing gold prices higher.