The global gold market is anticipating a new rally: analysts from the Swiss financial holding UBS Group predict an increase in gold prices to $2,900 per ounce by the end of 2025. Furthermore, they believe that by the end of 2026, the price of the precious metal could reach $2,950 per ounce.
UBS is confident that the gold rally is far from over. Although a consolidation of prices may occur in the near term due to the strengthening dollar and concerns that additional fiscal stimulus in the U.S. could lead to an increase in Federal Reserve (Fed) interest rates, this is viewed as a temporary phenomenon. After a period of stabilization, the precious metal is expected to rise in value again.
The main factors influencing the rise in gold prices include:
Strong interest in asset diversification: investors are seeking ways to protect their capital amid instability.Increased global uncertainty: geopolitical risks and economic challenges are driving demand for safe assets.High macroeconomic volatility: fluctuations in financial markets are prompting investors to opt for reliable investments.
In an unstable global economy, gold traditionally serves as a safe asset. Investors worldwide are increasing their investments in precious metals, aiming to safeguard their portfolios against potential risks. Rising tensions in international relations, trade wars, and the pandemic's aftermath continue to impact the economic situation, further boosting demand for gold.
One factor that could temporarily restrain the rise in gold prices is the strengthening of the U.S. dollar. Additional fiscal stimulus in the U.S. may lead to a tightening of monetary policy and an increase in Fed interest rates. However, according to UBS analysts, these measures have a short-term effect, and in the long run, gold is expected to continue its rally.
US President-elect Donald Trump intends to appoint Chris Wright, the head of the Liberty Energy oil company, as energy minister. The Republican called him one of the pioneers in the "American shale revolution."
Wright is the founder of Liberty Energy, which serves energy companies. He denies the existence of a "climate crisis." The head of the company opposes such concepts as "clean energy" and "dirty energy". In his opinion, all energy sources have both positive and negative effects on the world.
Most likely, under Trump, the United States will increase production, including at the expense of places where it was previously believed that this would harm the environment.
The shale revolution will also continue.
