UBS Predicts Gold Prices Will Rise 10% in 2024 Amidst Fed Policy Pivot

UBS, a fiscal services company, predicts that 2024 volition beryllium fruitful for gold, forecasting a terms summation of 10% implicit existent marketplace prices. According to UBS analysts, this terms summation volition beryllium powered by a pivot successful the existent argumentation of the U.S. Federal Reserve, which is projected to commencement cutting involvement rates arsenic soon arsenic May.

UBS Predicts Gold Price Rise, Rate Cuts

UBS, a Swiss fiscal services institution contiguous successful implicit 50 countries, has predicted a bullish twelvemonth for gold. In a enactment released connected Friday, USB analysts predicted that golden prices could emergence to 10% implicit existent marketplace prices contempt the terms simplification that the precious metallic faced successful December.

The instauration expects that golden mightiness beryllium capable to scope $2250 per ounce this year, fixed that determination are inactive antithetic factors that could propulsion the request for gold. One is the anticipation of a U.S. Federal Reserve involvement complaint cut, that would awaken caller involvement successful golden markets.

In this sense, UBS states that the “power of the Federal Reserve’s argumentation pivot should not beryllium underestimated.” While determination is inactive not a wide reply connected the contented of erstwhile volition the Federal Reserve commencement cutting involvement rates, UBS expects a 100 ground points complaint chopped arsenic soon arsenic May. This would commencement “putting unit connected the U.S. dollar and existent involvement rates, which should spark caller demand, peculiarly from exchange-traded golden funds.”

In December, the World Gold Council (WGC) anticipated a level show for golden successful lawsuit of a “soft landing” scenario, which U.S. Treasury Secretary Janet Yellen has already declared arsenic reached.

UBS concluded that “ongoing macro and elevated geopolitical risks proceed to warrant holding vulnerability to golden for hedging and diversification purposes,” fixed that the plus is traditionally considered a situation hedge owed to its deficiency of recognition hazard and antagonistic correlation to hazard assets, according to WGC’s expert Johan Palmberg.

What bash you deliberation astir UBS’s prediction astir golden prices successful 2024? Tell america successful the comments conception below.