UBS and Goldman Sachs have significantly increased their gold price forecasts, citing robust investor sentiment and sustained central bank demand. UBS strategist Joni Teves raised her year-end target to $2,900 per ounce, with a potential to reach $3,200, while Goldman Sachs analysts, led by Lina Thomas, set their year-end target at $3,100.
Teves attributes the bullish outlook to strong investor sentiment amid macroeconomic uncertainty and limited investor positioning, suggesting ample room for increased gold holdings. She also highlighted the role of official purchases in supporting the market and liquidity issues amplifying price action.
Goldman Sachs emphasized structurally higher central bank demand as a key factor, estimating it could add 9% to the gold price by year-end. They also noted that heightened policy uncertainty could drive gold prices as high as $3,300.
Gold futures (GC00) rose 1% to $2,923.80 an ounce, outperforming U.S. stocks, bonds, the Swiss franc, and the Japanese yen this year.