UBS Group has revised its gold price forecast upward to $3,200 per ounce, citing rising demand for safe-haven assets amid global trade tensions and economic uncertainty. The Swiss banking giant expects this target to be met within the next four quarters, possibly as early as June.
The bank’s latest revision follows a sharp rally in gold prices, which recently surpassed the $3,000 mark—an earlier price projection that was reached sooner than many analysts had anticipated. UBS analysts attributed the metal’s strong performance to its status as a reliable store of value in times of economic and geopolitical instability.
UBS pointed to several factors underpinning the surge in gold prices. Chief among them is heightened investor uncertainty fueled by U.S. President Donald Trump’s plan to introduce broad reciprocal tariffs and additional sector-specific tariffs next month. The proposed measures have raised concerns about a further escalation in trade conflicts, prompting investors to seek refuge in gold.
Another significant factor is increased inflows into bullion-backed exchange-traded funds (ETFs). UBS noted that these investment vehicles continue to attract strong demand, reinforcing gold’s upward trajectory. Additionally, central bank purchases remain a crucial support for the market. UBS estimates that total central bank gold buying will exceed 1,000 tonnes by the end of the year, maintaining a robust trend seen in previous years.
Monetary Policy and Economic Outlook
Gold prices are also being bolstered by expectations of additional interest rate cuts by the Federal Reserve. UBS analysts observed that traders are increasingly factoring in the possibility of further monetary easing as concerns about a potential U.S. recession mount. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold, making it a more attractive investment.
“The worsening outlook for the U.S. economy is reinforcing gold’s appeal as a safe-haven asset,” UBS analysts wrote in a note published Monday. “With uncertainty on multiple fronts, we expect demand to remain strong in the near term.”
Broader Market Consensus on Gold’s Strength
UBS is not alone in its bullish stance on gold. Several other major financial institutions have recently raised their price targets for the precious metal. Macquarie Group projected that gold could surge to $3,500 per ounce in the second quarter of this year. Similarly, Goldman Sachs recently adjusted its 2025 gold forecast to $3,100 per ounce, reflecting growing investor interest and economic concerns.
While the timing and magnitude of future gold price movements remain uncertain, analysts widely agree that a combination of geopolitical risks, economic slowdown fears, and strong institutional demand could continue to propel prices higher.
With gold already breaching previous upside projections, all eyes are now on whether the metal can sustain its momentum and reach UBS’s revised target of $3,200 per ounce. If UBS’s forecast materializes, it would mark another large milestone in gold’s ongoing rally.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
The post UBS Raises Gold Price Target to $3,200 as Haven Demand Surges appeared first on MiningFeeds.
