The Gold Correction Is Technical And Temporary, The Next Target Is $4,200 — UBS
11/03/2025
The current pullback in the gold market is only temporary, and the yellow metal's price is still on track to reach $4,200 per ounce, with an upside scenario of intensifying geopolitical or market risks driving it as high as $4,700, according to analysts at UBS.
UBS analysts also cited the World Gold Council's Q3 Gold Demand Trends report, which confirmed "very strong and accelerating buying" from both central banks and individual investors.
"We like to buy the dip in gold," the analysts said, adding they continue to believe that investors "remain under allocated" to the metal.
On Oct. 20, Sagar Khandelwal, strategist at UBS Global Wealth Management, said lower real interest rates, a weaker dollar, rising government debt, and geopolitical turmoil could push the yellow metal to $4,700 per ounce by Q1 2026.
UBS believes investment demand can strengthen even further. "Coupled with still-elevated central bank purchases, global gold demand this year should, in our view, reach around 4,850 metric tons, the highest level since 2011," Khandelwal wrote. "If private investors begin diversifying US Treasury holdings into gold, which has been a trend among central banks, spot prices could be pushed even higher."
"Finally, as economic, geopolitical, and policy uncertainties remain, we expect continued flows into the yellow metal, which could spur additional gains toward our upside case of USD 4,700/oz," he said.
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