UBS raises 2024 Gold Target

The investment bank has revised its 2024 gold price projections to average $2,365, up 8% from earlier estimates, with a $2,600 year-end aim. UBS predicts that gold prices will rise over $2,800 during the next two years, indicating a strong outlook in spite of possible long-term weakening.

According to UBS analysts, the upward adjustment is the result of significant purchases of gold by the official sector and persistent physical demand, which have "effectively created a level shift higher in gold's trading range."

The macroeconomic uncertainties and ongoing geopolitical dangers have reinforced investors' optimistic views on gold, which have been strengthened by this structural change.

According to UBS, the gold market is about to enter a seasonally calmer phase, but this presents an opportunity. In particular, its analysts believe that with many market players taking vacations, the summer months in the Northern Hemisphere may result in mediocre price activity for the bullion.

Furthermore, as noted by UBS, worries about the US budget deficit and the approaching US elections may act as further drivers for rising gold prices in the latter part of 2024.

(Sources: iinvesting.com, reuters.com)