Key financial institutions are raising gold price forecasts as prices for precious metals benefit from the fears of the trade war and the increased accumulation of central banks.
This week, both City and UBS strategists have issued an increase in gold price forecasts, predicting that precious metal bullishness will continue as markets are pressured by geopolitical tensions and economic uncertainties. .
Gold-backed cryptocurrencies benefit from this trend, with tokens like Paxg and Xaut looking at performance in line with precious metal performance. These tokens are backed by physical gold stored in safes, outperforming the wider cryptocurrency market amid uncertainty.
Citi adjusted its short-term gold price target to $3,000 per ounce, increasing its annual average forecast to $2,900, up from $2,800, reported Investing.com. Behind that hike was not only the above factors, but also concerns about global growth that are expected to drive demand for precious metals.
Meanwhile, UBS hiked its 12-month gold price target to $3,000 per ounce, up from $2,850. Precious metals already violate the latter, and are currently trading at $2,860 after a rise of about 9%.
A UBS strategist led by Mark Haefele said in a memo that Gold “has once again proved its lasting appeal as a valuable store and a hedge against uncertainty.” Meanwhile, Citi's memo pointed out that “trade wars and geopolitical tensions will strengthen the trend of reserve diversification/deco-optimization and support gold demand in the official sector of emerging markets (EMs). Masu.
Read more: Amid concerns about trade war, cryptocurrencies surged gold-backed as a record of precious metal hits
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