Gold Price Forecast Rises as Trade War Fears and Central Bank Accumulations Drive Demand
Major financial institutions have recently updated their gold price forecasts, reflecting the ongoing bull run of the precious metal amid escalating trade tensions and increased central bank accumulations.
Citi and UBS strategists have both revised their gold price predictions upwards, citing geopolitical uncertainties and economic instabilities as key drivers behind the surge in demand for gold. This trend has also benefited gold-backed cryptocurrencies such as PAXG and XAUT, which have been performing in line with the price of physical gold.
According to reports from Investing.com, Citi has raised its short-term gold price target to $3,000 per ounce and increased its average forecast for the year to $2,900, up from $2,800. The decision to revise their forecast was influenced not only by the aforementioned factors but also by concerns over global growth, which are expected to further boost demand for the precious metal.
Similarly, UBS has adjusted its 12-month gold price target to $3,000 per ounce, up from $2,850. With gold already trading at $2,860, marking a 9% increase year-to-date, the precious metal has surpassed UBS’s previous target and is showing no signs of slowing down.
The rise in gold prices is indicative of investors seeking safe-haven assets in times of uncertainty, with gold being a traditional go-to option during periods of market volatility. As tensions continue to escalate on the global stage, it is likely that the demand for gold will remain strong, further supporting the upward trajectory of its price.
In conclusion, the outlook for gold remains positive as financial institutions continue to raise their price forecasts in response to growing geopolitical risks and economic uncertainties. Investors looking to diversify their portfolios and hedge against market volatility may find gold to be a reliable asset in the current climate of uncertainty.