Gold prices continue their bullish momentum, with UBS revising its price target upward, projecting a potential peak of over $3,200 per ounce before stabilizing.
At 10:30 GMT, gold (XAU/USD) was trading at $2,898.25, up 0.52% on the day, reflecting strong investor interest.
1. UBS Raises Gold Forecast: Key Drivers Behind the Bullish Outlook
? Record-Breaking Rally in Early 2025
Gold has soared to record highs just six weeks into the year, with market dislocations fueling rapid price appreciation.
Previous UBS projections underestimated the speed and strength of gold’s surge.
? Revised Gold Price Outlook
New Peak Prediction: Above $3,200 per ounce in late 2025.
Long-Term Outlook: Stabilization at elevated levels due to continued strong demand.
? Key Catalysts for Higher Gold Prices? Underinvestment in Gold – Many investors missed past opportunities and are now eager to buy during pullbacks.? Strong Central Bank Demand – Governments continue to stockpile gold amid geopolitical risks.? Liquidity Constraints – Thin market conditions could exaggerate price moves, making gold sensitive to demand spikes.
? “While it feels like so much has already happened in 2025, the biggest gold price moves may still be ahead,” UBS strategist Joni Teves stated.
2. Broader Precious Metals Outlook: Silver & Platinum to Outperform?
? White Metals Forecast (Silver, Platinum, Palladium)
UBS maintains its 2025 outlook for Silver Futures, Platinum Futures, and Palladium Futures.
Silver & Platinum Expected to Outperform Gold ?
Stronger industrial demand (especially in green energy & automotive sectors).
Higher relative percentage gains, even as gold reaches new peaks.
3. Investor Strategy: Is This the Time to Buy?
? Short-term pullbacks could offer key entry points.? Physical demand surges could amplify gold’s rise.? Watch central bank purchases and liquidity conditions closely.
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Final Thoughts
? UBS now expects gold to surpass $3,200 in late 2025.? Key drivers include central bank demand, investor FOMO, and liquidity constraints.? Silver & platinum could see even bigger percentage gains.
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