Financial Institutions Raise Gold Price Forecasts Amid Trade War Concerns and Central Bank Buying
Major financial institutions have recently raised their gold price projections, driven by growing trade war anxieties and central banks’ ongoing accumulation of the precious metal.
This week, strategists from both Citi and UBS revised their gold price targets upwards, predicting that gold’s bull run will persist as global markets face mounting geopolitical risks and economic uncertainties. As a result, gold-backed cryptocurrencies such as PAXG and XAUT have mirrored gold’s price movements, outperforming the broader cryptocurrency market amid this volatility. These digital tokens, which are backed by physical gold stored in vaults, have proven to be a resilient asset class in times of instability.
Citi has updated its short-term gold price target to $3,000 per ounce, with its average forecast for 2025 now at $2,900, an increase from its previous projection of $2,800. The bank cites growing global growth concerns and the demand for a safe haven as key drivers of the metal’s continued rise.
UBS, on the other hand, has raised its 12-month gold price target to $3,000 per ounce, up from $2,850. Gold has already surpassed the latter target, currently trading at $2,860 after gaining about 9% year-to-date.
Mark Haefele, UBS’s Chief Investment Officer, stated in a note that gold’s continued strength as a “store of value and hedge against uncertainty” has been reaffirmed. Similarly, Citi highlighted how “trade wars and geopolitical tensions are further accelerating the trend of reserve diversification and de-dollarization, which boosts gold demand in emerging markets.”
As both institutions adjust their outlook, the outlook for gold and gold-backed tokens continues to look strong as global economic and political risks persist.
