UBS lifts forecast update about gold price
Fresh records of gold prices were reviled on Monday. According to the UBS forecast, the most precious metal, “gold,” will increase in price.
Gold was not far away from its 14th record this year because its June delivery price was GCM24 GCOO up $10, or 0.4%, to $2,355.60 an ounce. That price will change intraday, and maybe they can make some changes in the market. Friday’s record close of $2,345.40 an ounce on Comex.
While there is some geopolitical tension and cuts in the interest rate of the Federal Reserve, the gold’s will roughly rise by 13% so far, and investors are expecting that the central bank will keep buying gold and making purchases even more later.
Wall Street Bank has been trying to keep itself up in the rally of gold. Giovanni Staunovo, who’s leading a team of UBS analysts, said it was “faster and more forceful than our already bullish expectations.”
Gold forecasts lifted up to $250 an ounce each for this year, the June forecast was lifted up to $2,300 an ounce, a target that has been achieved at the end of the year; and the end of March 2024 forecast to $2,500 an ounce. The bank maintained the target of $2,550 an ounce at the end of the of the previous year (2024).
Despite the high gold records for this year and after the Federal Reserve cut the interest rate this year, Staunovo and his colleagues said that gold exchange-traded fund holdings should start rising.
Staunovo also said that “they should trigger their next step in demand via ETFs,” where holdings stand at a 4-year low.