UBS joins GS in forecasting gold's rally isn't over yet
Gold will rally to $2,900 an ounce by the end of next year, according to UBS Group AG, echoing a call from Goldman Sachs Group Inc. for further gains as central banks expand their holdings.
There's likely to be a period of consolidation due to the stronger dollar and
concerns over the potential for more US fiscal stimulus to lead to higher rates
before the precious metal starts climbing again, UBS analysts
including Levi Spry and Lachlan Shaw said in a note. Bullion would rise a little further, to $2,950 an ounce, by the end of 2026, they said.
"The US Red Sweep, strong diversification buying interest and elevated global uncertainty to continue to support prices," the analysts said. Gains "should be driven by continued strategic gold allocations and official-sector
purchases in a backdrop of high macro volatility and persistent geopolitical risks," they said.
Gold has been one of the strongest-performing commodities of 2024, setting
successive records before a pullback following the US presidential election as
the dollar spiked. The year-to-date advance has been supported by central-bank
accumulation, the Federal Reserve's pivot to monetary easing, and geopolitical
tensions in Europe and the Middle East.
Spot gold traded near $2,624 an ounce, and has rallied 28% this year.
Source: www.Bloomberg.com