UBS: Gold Set to Reach $2,900 by the End of 2025

According to UBS Group AG, gold is expected to rise to $2,900 per ounce by the end of next year. UBS analysts, including Levi Spry and Lachlan Shaw, mentioned that before the precious metal starts rising again, there may likely be a consolidation period due to concerns about a stronger dollar and increased U.S. fiscal stimulus leading to higher rates. Analysts forecast that gold will further climb to $2,950 per ounce by the end of 2026. They stated, "The Red Sweep in the U.S., strong diversifying buying interest, and increasing global uncertainty will continue to support prices." Goldman Sachs predicted this week that the precious metal will climb to $3,000 per ounce by the end of next year. UBS also indicated that monetary authorities are likely to make more purchases. "It is probable that the official sector, which tends to buy physical gold bars, will continue to add to reserves for diversification purposes and due to geopolitical tensions and sanction risks. The percentage of gold reserves relative to total assets remains small for many central banks," they said.