"The golden age has arrived! UBS bullish on gold price rising to $3900"

UBS Group has raised its gold price forecast to reach $3800 per ounce by the end of 2025 and $3900 per ounce by mid-2026, citing expectations of a renewed rate cut by the Federal Reserve amid weak US labor market data. The investment bank also expects a weaker US dollar and continued geopolitical uncertainty to drive investor demand, with market participants using gold as a hedge. UBS analysts stated, "From a portfolio perspective, diversification and holding related hedging assets are crucial." They added that President Trump's desire to lower policy rates has also boosted the attractiveness of gold. "We maintain a positive view on gold and maintain a long position in gold in global asset allocation. In addition, our analysis shows that allocating single-digit percentage of gold in a portfolio is the optimal choice." Gold has resumed its upward momentum, with a 38% increase so far this year, currently trading slightly below the historical high of $3674 per ounce set earlier this month. At the time of writing, the gold price has risen by 0.3% to $3644.43 per ounce.