Gold Price Predicted to Hit $2,700 in 2025
Despite the slowed rally for the metal, the Gold price has been predicted to face another rally that carries it to $2,700 in 2025. Indeed, UBS Bank has forecasted a massive surge that would mean an all-time high for the asset amid its continued prevalence this year.
Gold is currently confronting some resistance at the $2,400 level after reaching a milestone mark of $2,449 this month. Yet, experts have noted that the asset is likely to regain its momentum. Among them are UBS analysts, who predict a year-end rally to preview record gains for the asset next year.
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UBS Predicts Gold Price to Reach $2,700 Next Year
Since the concluding months of 2023, the price of gold has increased immensely. Driven by its status as a safe haven asset and Central Bank accumulation throughout the gold, the metal has dominated investment as traders seek out diversification efforts and inflation hedges.
That performance culminated in a landmark moment on May 20th, when the asset reached a landmark price. Since then, it has struggled to gain momentum to the next crucial point and has continued trading at $2,4000. Yet, that could be set to change.
The gold price has been predicted to carry a year-end rally into the next year, reaching a price of $2,700 in 2025. Specifically, UBS analysts have expressed their high hopes for the metal. They note that it should reach a high of $2,600 by the end of 2024.
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The bank shared three factors that support their forecast: interest rate cuts, central bank demands, and geopolitical uncertainty. Specifically, the bank expects the US Federal Reserve to begin cutting interest rates at some point this year. Although they have noted it is not likely to take place during the summer, there is a 50% chance those cuts happen in September.
Additionally, they predict continued interest from central banks. Data supports that gold reserves will increase exponentially in 2024. Specifically, these reserves have grown by over 1,000 metric tons in the last two years.
Finally, geopolitical concerns and growing tensions will drive interest in the safe haven and hast. These circumstances are always positive for hedges, and ongoing global worries will be no different. Overall, the asset should have plenty of fuel to drive investor interest and meet UBS predictions.