Citi and UBS Raise Gold Price Forecasts Amid Global Uncertainty

Updated Gold Price Forecasts Reflect Market Optimism

Major financial institutions such as Citi and UBS have revised their gold price forecasts upward, signaling confidence in the precious metal's continued growth. These updates come amid escalating trade war concerns, geopolitical tensions, and significant gold purchases by central banks, which have bolstered gold's value.

Gold-Backed Cryptocurrencies Gain Traction

Gold-backed cryptocurrencies, including PAXG and XAUT, are benefiting from the rising price of gold. These digital assets, pegged to the value of physical gold, are outperforming the broader cryptocurrency market, driven by the same factors supporting gold prices.

Citi's Revised Gold Price Target

Citi has raised its short-term gold price target to $3,000 per ounce, with an average forecast of $2,900 for the year, up from $2,800. This revision reflects concerns over global economic growth, trade wars, and central bank activity.

UBS's Optimistic Outlook

UBS has also adjusted its 12-month gold price forecast to $3,000 per ounce, up from $2,850. Gold is currently trading at $2,860, marking a 9% increase since the start of the year. UBS strategists, led by Mark Haefele, highlight gold's enduring appeal as a store of value and hedge against uncertainty.

Key Drivers of Gold Demand

Both Citi and UBS point to trade conflicts and geopolitical tensions as key factors driving reserve diversification and de-dollarization trends, particularly in emerging markets. These dynamics are expected to further support gold demand in the coming months.

As market uncertainties persist, gold's role as a safe-haven asset continues to strengthen, making it a critical component of investment strategies for risk-averse investors.