UBS raises year-end gold price target to US$3,800 an ounce.
UBS raised its gold price forecast on Friday by US$300 to US$3,800 (RM15,971) per ounce by the end of 2025, and by US$200 to US$3,900 by mid-2026, citing anticipated Federal Reserve (Fed) easing and US dollar weakness linked to rate cuts and geopolitical risks.
The Swiss bank also revised its estimate for gold exchange-traded fund holdings, projecting levels to exceed 3,900 metric tons by the end of 2025, approaching the previous record of 3,915 tons set in October 2020.
he bank highlighted geopolitical concerns and policy differences between the US administration and the Fed as key factors boosting gold’s appeal, along with US President Donald Trump’s stance favouring lower interest rates.
UBS expects central bank purchases of gold to remain robust at about 900 to 950 tons this year, or slightly below last year’s near-record purchases of just above 1,000 tons.
“The key risk for gold is if the Fed is forced to raise rates due to inflation-related upside surprises,” UBS added.
Meanwhile, Commerzbank has raised its gold price forecast to US$3,800 per troy ounce by the end of 2026, up from its earlier projection of US$3,600.
The bank now expects the Fed to cut interest rates by a total of 200 basis points by the end of next year, 50 basis points more than previously assumed.
Source: Theedgemalaysia