Gold prices have reached a record high amid ongoing economic and geopolitical uncertainty. According to UBS, there is more upside for the precious metal.
On March 14, gold prices passed $3,000 per ounce for the first time ever. Many onlookers attributed this to investors seeking stability as US sentiment indicators weaken and the trade war escalates with tariff risks from President Donald Trump.
According to a note by UBS Global Wealth Management’s chief investment office, the rally will continue «as long as policy risks and an intensifying trade conflict continues to spur safe-haven demand».
Price Target
UBS has lifted its price target to its previous upside scenario of $3,200 per ounce. The bank cites ETF inflows as a major driver for higher prices alongside central bank buying which it believes could once again end at levels similar to recent years at 1,000 metric tons annually.
«Short term, we acknowledge that the market has drifted into technical overbought territory but think the prevailing mood among investors remains one of caution for US equities and confidence in gold,» UBS added. «If President Trump steps back from his trade policies, it would undermine defensive buying with downside technical support at $2,850/oz.»
