"The Golden Age" has arrived! UBS is bullish on gold prices rising to $3,900
UBS Group AG has raised its gold price forecast to reach USD 3,800 per ounce by the end of 2025 and USD 3,900 by mid-2026, citing expectations that the Federal Reserve will resume interest rate cuts amid weak U.S. labor data. The investment bank also anticipates that a weaker dollar and ongoing geopolitical uncertainty will drive increased investor demand, with market participants viewing gold as a hedging tool. UBS analysts stated, "From a portfolio perspective, diversification and holding related hedging assets are crucial." They added that U.S. President Trump’s desire to lower policy interest rates has also enhanced gold's appeal. "We maintain a bullish outlook on gold and hold long positions in gold within global asset allocation. Furthermore, our analysis indicates that a single-digit percentage allocation to gold is optimal." Gold has regained upward momentum, with a year-to-date increase of 38%, and the current price is slightly below the historical high of USD 3,674 per ounce set earlier this month. As of the time of writing, gold prices are up 0.3%, reported at USD 3,644.43 per ounce
According to the Zhitong Finance APP, UBS Group AG has raised its gold price forecast to reach $3,800 per ounce by the end of 2025 and $3,900 by mid-2026, citing expectations that the Federal Reserve will resume interest rate cuts amid weak U.S. labor data.
The investment bank also anticipates that a weaker dollar and ongoing geopolitical uncertainty will drive increased investor demand, with market participants viewing gold as a hedging tool.
UBS analysts stated, "From a portfolio perspective, diversification and holding related hedging assets are crucial." They added that U.S. President Trump’s desire to lower policy interest rates has also enhanced gold's appeal.
"We maintain a bullish outlook on gold and hold long positions in gold within global asset allocation. Furthermore, our analysis indicates that a single-digit percentage allocation to gold is optimal."
Gold has regained upward momentum, with a year-to-date increase of 38%, and the current price is slightly below the historical high of $3,674 per ounce reached earlier this month. As of the time of writing, gold prices rose by 0.3%, trading at $3,644.43 per ounce
