Gold Prices Forecast: UBS Hikes Its Target For 2024
Gold prices are currently trading around the $2,361 mark on Thursday and are up nearly 7 points in the day’s trade. It surged by close to 0.30% and remained in the green after the opening bell. The precious metal reached new highs in 2024 hitting the $2,450 mark last month. The prices dipped this month and are now at the $2,300 price range. Gold prices have soared nearly 18% this year and are among the top-performing assets in the commodity market in 2024.
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UBS Hikes Gold Prices Target For 2024
Leading global investment bank UBS has hiked its forecast for gold prices in 2024. The investment bank remains further bullish on gold claiming that the asset has more potential in the coming months.
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UBS previously forecasted that gold prices could trade at a minimum of $2,365 and a maximum of $2,600 in 2024. It has now hiked the forecast claiming that the price of gold could cross the $2,800 price range this year. That’s a hike of around 8% from its previous prediction for the commodity.
“This implies that although we expect prices to eventually ease over the long run, we now anticipate that after adjusting for inflation, nominal gold prices should hold at considerably higher levels than before at around $2,300,” the forecast read.
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The revision comes at a time when gold is experiencing high purchasing demand from central banks, retail investors, and institutional funds. The development has “effectively created a level shift higher in gold’s trading range,” said UBS strategists.
However, the second half of 2024 holds a lot of risk and uncertainty due to the upcoming US presidential elections. The US fiscal deficit could also pull the markets down. “We think any setbacks during this period should offer opportunities to build gold positions,” the UBS strategists summed it up.