‘Gold has once again proven itself’: Financial giants upgrade ounce forecasts
The image features a background of gold coins with an overlay of a rising price chart, illustrating an upward trend in gold prices. (Adobe Stock Photo)
Both U.S.-based Citigroup and Swiss bank UBS have revised their 12-month gold price forecasts, increasing to $3,000 per ounce from $2,800.
Citigroup attributed the adjustment to potential trade wars under U.S. President Donald Trump’s administration, geopolitical tensions, and the effects of de-dollarization. The bank also revised its 2025 average gold price forecast, raising it from $2,800 to $2,900 per ounce.
Additionally, Citigroup noted that a strengthening U.S. dollar would incentivize central banks in emerging economies to increase their gold holdings to support their currencies.
Meanwhile, investors are expected to turn to both physical gold and exchange-traded funds as a hedge against uncertainty, according to Citi analysts.
‘Gold has once again proven itself’
UBS also raised its 12-month gold price forecast from $2,850 to $3,000 per ounce, citing ongoing global interest rate cuts, market uncertainties, and strong demand from both investors and central banks, similar to Citi.
“While we acknowledge that the current spot price of $2,870 per ounce is above our fair-value estimate, gold’s enduring appeal as a store of value and hedge against uncertainty has once again proven itself,” UBS strategists, led by Mark Haefele, said in a note.
Gold prices surged to $2,882 per ounce on Feb. 5, reaching new highs amid Trump tariffs and a hawkish Federal Reserve stance, marking a gain of over 10% so far this year.
As of Feb. 6 at 14:10 GMT, gold is trading at $2,850 per ounce.
