When Will Gold Rise? Giant Bank Announces Key Dates and New Price Targets
While global markets are focused on the tension in the Middle East and inflation data, there has been an exciting development from the Swiss banking giant UBS. The bank continues to maintain its year-end targets for gold and silver, which could be described as 'record-breaking'. The banking behemoth has provided a new figure, announcing the date when gold is expected to rise.
What's the future of gold? A new forecast from a major bank.
Despite the escalating tension in the Middle East in recent times causing significant volatility in precious metal prices, strategists at UBS believe this won't lead to a lasting downturn. The bank's precious metals strategist, Joni Teves, reiterated in his latest assessment a forecast of $5,600 per ounce for gold.
Strong underlying factors lie behind the expectation of an upward trend, despite the pressure in the markets. Particularly, the interest rate policy of the U.S. Federal Reserve (Fed) and rising inflation data point to a decrease in real interest rates. This situation is seen as the main driving force directing investors towards gold, a safe haven. According to Teves, even though geopolitical risks may exert short-term pressure on prices, macroeconomic balances keep the needle pointing upwards.
While investors are curious about the answer to the question "Will gold prices fall?", a 'signal of rise' has been received from the bank.
Another significant point highlighted in the report pertains to the stance of central banks. Addressing the concern of many investors, 'Will the purchases cease?', UBS emphasized that central banks will not abandon their strategy of diversifying gold reserves. On the contrary, it is noted that the demand for gold maintains its vitality among both institutional and individual investors.
What will be the price of silver?
The expectation of a rise in gold is pulling silver along in its wake. However, silver has an additional trump card: an imbalance in supply and demand. According to UBS analysts, the demand for silver this year is set to far exceed production. This fundamental market dynamic could lead to silver exhibiting a much more aggressive performance compared to gold, potentially pushing it towards the $100 mark. The recent sideways trend in recent weeks is interpreted by the bank as an 'opportunity to establish a new position', with precious metals expected to outperform expectations for the remainder of the year.
According to the bank's forecast, silver is set to reach the $100 level.
The statements contained in the content are not investment advice.
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