UBS has predicted that gold will reach a target of US$2,900 by the end of 2025, positioning it as a preferred hedge against geopolitical tensions.
Gold prices have recently dipped to around USD 2,690, following a three-week high. Ongoing geopolitical risks, such as Russia's launch of an experimental hypersonic missile at Ukraine, are highlighted as reasons for this forecast.
Market analysts also suggest that the strength of the US dollar may be reaching its limits, indicating that the current valuation of the dollar could be overstretched. The gold market is starting the week on a shaky note, reflecting these broader economic and geopolitical concerns.