ব্যঙ্গাত্মক বর্ণনা এবং ফরেক্সের প্রবেশদ্বার বিন্যাস
UBS: strong demand by central banks sets stage for gold uptrend
The yellow metal will be in the spotlight! UBS analysts are betting on gold’s strength. Isn’t it great news for gold investors? The precious metal delivered a stunning performance in 2024, ending the year with a 27% gain and reaching an all-time high of $2,788 per ounce. Notably, gold has been on a steady bullish trend for five years straight. In the commodities market, only cocoa and coffee have outperformed the precious metal.
UBS acknowledged that central banks remained the primary buyers of gold. Their purchases, along with increased global risk premiums, have driven gold prices higher. Despite the fact that a correlation between gold and real interest rates was disrupted, these factors still supported the gold market in 2024.
Preliminary estimates suggest that central bank demand for gold reached 1,000 metric tons in 2024—slightly below the previous two years. In 2022, the market saw a record-breaking annual gold purchase of 1,082 MT, the largest in history.
Diversification played a key role in gold’s stellar rally. Analysts anticipate the uptrend going on in 2025, driven by prolonged trade and geopolitical uncertainty, as well as grave concerns over the US national debt.
Experts believe that large-scale gold purchases by central banks and strong diversification demand from investors will persist. As a result, long positions in gold remain dominant on a global scale. UBS forecasts that gold’s target price will reach $2,850 per ounce by the end of 2025.
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