UBS has increased its target price for gold to $3,600 per ounce by the end of March 2026. It cites steady central bank purchases and strong demand from ETFs. Furthermore, the investment bank expects $3,700 per ounce by June 2026. UBS increased its full-year ETF demand forecast from 450 to almost 600 metric tons in tandem with the revision.
Central banks are likely to purchase less than they did the previous year, but demand is still expected to be high. Additionally, the new projections emphasize how crucial gold is for managing volatile global markets. UBS expects bullion to remain appealing due to a weaker dollar and accommodative monetary policy. Furthermore, a lot of investors believe that gold is a crucial hedge against macroeconomic and currency risks.
UBS Lifts Gold Forecast as Global Risks Rise
A number of factors are reflected in the most recent addition to the gold price target. These factors include ongoing national efforts to reduce reliance on the dollar, persistent geopolitical instability, and robust demand for ETFs. Institutional investors and individual participants continue to show a strong interest in gold.
Additionally, low policy rates and sticky inflation continue to support demand for safe havens despite slower U.S. growth. Additionally, analysts note that a decline in the value of the US dollar might prolong the upward trend of gold. Commodities are becoming more and more popular among hedge funds as a diversification strategy.
Will ETF Demand Continue to Surprise Investors Ahead?
UBS projects that ETF demand will reach its highest levels since 2010 this year, with almost 600 metric tons expected. This spike highlights the demand for gold-backed products among investors in the face of currency and equity volatility. In the meantime, reserve diversification is continuing at a steady pace by central banks.
Purchases may have decreased somewhat from the previous year, but they are still historically high. Market analysts predict that if interest rates remain stable, inflows could increase even more. As a result, many long-term funds continue to trust physically backed ETFs as a trustworthy investment.
Investors Brace as Gold Price Target Outlook Strengthens
UBS’s bullish outlook on gold is emphasized by the new price target. The outlook’s strong central bank contributions and rising demand for ETFs make gold an increasingly attractive safe-haven investment. Additionally, forex traders might consider the metal to be a volatility hedge.
Nonetheless, asset managers may rely on it to keep their portfolios stable. A quicker global recovery could limit gains, but long-term macroeconomic risks continue to support gold’s trend.
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