UBS Wealth Management: Strong demand for gold, gold prices expected to rise further.

UBS Wealth Management said on Tuesday that despite the U.S. government's possible end to the 40-day shutdown and improved risk appetite, the price of gold has continued to rise recently. The bank believes that with global debt concerns, political uncertainty, and the loose policies of the Federal Reserve driving demand for gold, the price of gold is expected to further increase. A commentary from the bank's Asia-Pacific investment director's office stated that gold is an effective portfolio diversification tool and a hedge asset, therefore, maintaining the target price of $4,200 per ounce for the next 12 months and suggesting that political and financial market risks are significantly increasing which could push the price of gold towards $4,700 per ounce. The bank also mentioned that weakening labor demand should prompt the Federal Reserve to cut interest rates twice before early 2026, as the real interest rates in the U.S. may further decline and weaken the attractiveness of the U.S. dollar, gold is expected to receive support.