UBS and Commerzbank boosted their gold price projections on Friday, joining other investment banks as investors drive the safe-haven metal to all-time highs amid economic uncertainty caused by US President Donald Trump’s trade policies.
Trump’s tariffs have roiled financial markets, fueling concerns about inflation and a worldwide recession. While he has suspended most levies, he has increased tariffs on China to 145%, leading Beijing to raise tariffs on US exports to 125%.
At 12.11GMT, spot gold was up 1.4% to $3,217.15 per ounce, having previously reached a new high of $3,237.56. Bullion is up over 6% this week. US gold futures rose 1.8% to $3,234.90.
We expect gold’s surge to continue into next year, with prices stabilizing at higher levels farther out,” UBS analysts said in a note, estimating prices of $3,500/oz this year.
Commerzbank also boosted its gold price projection for the end of the year to $3,000, up from $2,850, citing a record $345.5 billion in assets under management in gold exchange-traded funds as of March 31.
Top gold collector. China’s gold holdings increased to 73.7 million fine troy ounces at the end of March, from 73.61 million ounces at the end of February, as the central bank purchased the valuable metal for the fifth consecutive month. Earlier this week, Deutsche Bank increased its average gold price projections for 2025 and 2026 to $3,139 and $3,700 per ounce, respectively.
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