UBS says not to be too concerned about record high gold prices and the 30%+ rise so far this year:
- prices will continue to rise in the months ahead
UBS forecast $2850 by mid-2025. In brief, UBS cite gold continuing to benefit from rate cuts:
- Federal Reserve easing cycle is still at an early stage ... expect more cuts in 2024 (100bp in total!) & another 100bps in 2025
- Global rate cuts too - China, Canada’, ECB, and more
Politics:
- gold's political hedging utility could blunt near-term dollar upside risks if former President Donald Trump wins the US election
More:
- Federal Reserve’s rate-cutting cycle driving financial investment demand
- Ongoing central bank buying
