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Banking giants UBS and ANZ have raised their gold price targets above $3,000 per ounce, signaling confidence in the continued bullish trend for the precious metal. UBS now expects gold to reach as high as $3,200, citing escalating geopolitical tensions, potential trade wars, and central bank policies that favor lower interest rates. ANZ similarly adjusted its outlook, reflecting a market sentiment increasingly driven by uncertainty and the need for safe-haven assets. Investors have been piling into gold amid concerns over inflation, global economic slowdown, and the Federal Reserve’s dovish stance, making bullion one of the best-performing assets of the year.
The prospect of U.S. interest rate cuts has played a major role in the ongoing rally, as lower yields reduce the opportunity cost of holding non-yielding assets like gold. Federal Reserve officials have hinted at the possibility of multiple rate cuts this year, responding to economic data that suggests a slowdown in growth. At the same time, inflation remains persistent, prompting investors to turn to gold as a hedge. Central banks worldwide, particularly in China and India, have also increased their gold reserves, adding further support to prices. With the U.S. dollar facing potential weakness due to easing monetary policies, gold’s appeal continues to grow as a reliable store of value.
Geopolitical risks have further fueled the demand for gold, with rising tensions in Eastern Europe, the Middle East, and the ongoing trade disputes between major global economies. The threat of new tariffs and retaliatory measures has intensified worries about global economic stability, forcing investors to reassess their risk exposure. Historically, geopolitical uncertainty has been a key driver of gold prices, and given the current landscape, this trend is expected to persist. With both institutional and retail demand growing, analysts suggest that gold could see even more upside, particularly if central banks remain accommodative and market volatility continues.
Looking ahead, analysts believe gold could push even higher if current macroeconomic conditions persist. UBS and ANZ’s bullish targets highlight growing confidence that demand will remain strong in the face of slowing economic growth and heightened financial uncertainty. Should inflationary pressures remain stubborn and geopolitical risks escalate, capital inflows into gold-backed exchange-traded funds (ETFs) and physical bullion could accelerate. As traditional safe-haven assets, such as U.S. Treasuries, become less attractive due to rate cuts, gold could continue its upward trajectory, potentially surpassing $3,200 per ounce by year-end.
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