UBS and Goldman Sachs both sing the same tune: the upward trend of gold will not stop.

UBS Group expects that by the end of next year, the price of gold will rise to $2,900 per ounce. Goldman Sachs also predicts that as central banks around the world increase their gold holdings, the price of gold will continue to rise. UBS analysts state that by the end of 2026, the price of gold will further increase to $2,950 per ounce. Goldman Sachs predicts this week that by the end of next year, the price of gold will climb to $3,000 per ounce. UBS analysts, including Levi Spry and Lachlan Shaw, stated in a report that there may be a period of consolidation before precious metals begin to rise again due to concerns about a strengthening dollar and the possibility of rising interest rates from more fiscal stimulus in the United States. The analysts said, "The 'red sweep' in the United States, strong diversified buying interest, and increasing global uncertainty will continue to support the price of gold." They mentioned that continued strategic gold allocation and official sector purchases should drive the price of gold up in the backdrop of high macroeconomic volatility and ongoing geopolitical risks. Gold has been one of the strongest-performing commodities in 2024, breaking records continuously, but experienced a pullback after the US presidential election due to a surge in the US dollar. The rise this year has been supported by central bank accumulation of funds, the Federal Reserve's shift towards loose monetary policy, and geopolitical tensions in Europe and the Middle East. As of writing, spot gold prices are trading around $2,630 per ounce, up 28% so far this year. Goldman Sachs predicts this week that by the end of next year, the price of gold will rise to $3,000 per ounce. This bullish outlook is based on increased demand from central banks, as well as funds flowing into exchange-traded funds (ETFs) as the Federal Reserve raises interest rates. UBS also hints that monetary authorities will increase their purchasing power. "Official sector buyers who tend to buy physical gold bars may continue to build their reserves for diversification purposes, as well as facing geopolitical tensions and sanction risks," the institution stated. "The proportion of gold reserves to total assets for many central banks remains quite small."