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.
Investors are increasingly viewing investments in gold as a means of asset diversification. Including precious metals in an investment portfolio helps reduce risks associated with stock and bond market volatility. Gold shows stable growth during periods of
