UBS Raises Gold Price Forecast Amid Economic and Geopolitical Shifts

The Weighty Exchange: Unveiling the Precise Measurement of Gold

UBS has increased its gold price forecast to $2,500 per ounce by the end of September, up from $2,400 per ounce. Furthermore, the global investment bank anticipates gold prices will continue to rise, predicting $2,600 per ounce by the end of 2024 and $2,700 per ounce by June 2025.

In a note on Thursday, the UBS Chief Investment Officer (CIO) team explained that on May 20, gold prices hit a record high of $2,450 per ounce. This surge was driven by expectations of Federal Reserve rate cuts and a weakening U.S. dollar due to softer U.S. economic data. The team noted:

There are three key drivers for the upgrade.

Firstly, softer U.S. economic data in April led to a reevaluation of Federal Reserve rate cut expectations, with money markets now predicting approximately 40 basis points of easing in 2024, up from 28 basis points at the end of April. Lower interest rates typically drive exchange-traded fund (ETF) inflows, bolstering gold demand.

Secondly, the forecast for central bank gold demand in 2024 has been increased to 950–1,000 metric tons, up from the previous estimate of 800–850 metric tons. The first quarter saw record purchases of 290 metric tons. Despite a recent slowdown in purchases by the People’s Bank of China (PBOC), Swiss trade data indicates continued strong buying from China.

Lastly, the UBS CIO team detailed that ongoing geopolitical uncertainties, including the U.S. election, conflicts in the Middle East and Ukraine, and heightened U.S.-China trade tensions, are expected to sustain gold’s appeal as a safe-haven asset.

Also Read, Donald Trump’s Crypto Holdings Surpass $14 Million

Tesla Investor Accuses Elon Musk of Insider Trading, Profiting $7.5 Billion


Sachin Chouhan is an avid entertainment enthusiast and dedicated follower of celebrity and entertainment news. He has always had a passion for the latest happenings in the world of entertainment and has made it his mission to stay up-to-date on all the latest trends, news, and gossip. With years of experience following the entertainment industry, Sachin has developed a keen eye for the latest celebrity fashion trends, music releases, movie reviews, and red-carpet events. His in-depth knowledge and expertise have made him a trusted source for entertainment news and celebrity updates. Contact us:

Leave a Reply