UBS analysts reiterated their bullish outlook for gold, citing its value as a hedge against macroeconomic and geopolitical uncertainty:
- Maintains a price target of $2,700 per ounce by mid-2025
Briefly from the UBS report:
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Gold is expected to rise 23% in 2024, reaching an all-time high, due to lower US yield expectations and central banks diversifying away from the US dollar.
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Gold has once again outperformed stocks during times of high volatility, confirming this historical trend.
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This was supported by interest rate cuts by the European Central Bank, although reduced expectations for the size of the Fed’s cuts were a drag on this.
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It also received support from inflows into physically backed gold ETFs, with August marking the fourth consecutive month of inflows.
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Demand for safe haven
This article was written by Eamonn Sheridan on www.forexlive.com.