Relentless Uptrend! Banks Raise Gold Price Target, Expected to Hit $3,200/Ounce

Relentless Uptrend! Banks Raise Gold Price Target,
Expected to Hit $3,200/Ounce

Prolonged Global Trade War May Push Investors Toward Safe-Haven Assets.

Banks Raise Gold Price Forecasts: UBS Predicts $3,200/Ounce
UBS has become the latest bank to raise its gold price forecast to $3,200 per ounce within the next four quarters, up from its previous estimate of $3,000 per ounce. The key driver behind this upward revision is the prolonged global trade war, which could lead investors to seek safe-haven assets like gold.

Factors Driving Gold Prices
Wayne Gordon and Giovanni Staunovo, analysts at UBS, noted that former U.S. President Donald Trump’s retaliatory tariff policy, set to be reimposed on April 2, could further pressure markets and boost demand for gold.

On March 14, gold prices surpassed the crucial $3,000 per ounce resistance level for the first time, driven by concerns over the weakening U.S. economy and growing recession risks.

Analysts also pointed out that market sentiment is shifting from expectations of economic stimulus under Trump’s policies ("Trump put") to reliance on Federal Reserve intervention ("Fed put") to support the financial markets.

Leading Banks Adjust Gold Price Targets
UBS is not the only bank revising its gold price projections. Macquarie Group recently forecast that gold could reach $3,500 per ounce by the second quarter of this year, while BNP Paribas SA also raised its average gold price outlook above $3,000 per ounce.

UBS recommends that investors allocate around 5% of their total assets to gold as part of a long-term risk diversification strategy.