UBS: U.S. rate cuts and escalating geopolitical risks will push gold prices to $6,200

BlockBeats News, February 24 — UBS reiterated its positive stance on gold, expecting the target price of international spot gold to reach $6,200 per ounce in the coming months. Analysts believe that geopolitical risks will remain high amid tensions between the United States and Iran, while the Federal Reserve’s easing cycle is expected to continue, putting pressure on real interest rates.

Analysts pointed out that global gold demand is expected to surpass 5,000 tons by 2025. UBS forecasts that, driven by stronger investment flows and continued purchases by central banks around the world, gold prices will further rise. On the supply side, growth appears to be limited.

Although high gold prices may incentivize exploration activities, consulting firm Wood Mackenzie estimates that by 2028, about 80 mines will exhaust their current production plans, indicating limited supply elasticity in the short term. (Jin10)