The main financial institutions have been increasing their gold prices forecasts, since the price of precious metal benefits from the growing fears of commercial war and the accumulations of the central banks.
This week, Citi and UBS strategists issued an increase in gold prices forecasts, anticipating that the execution of the precious metal bull will continue as markets are pressed by geopolitical tensions and economic uncertainties.
Cryptocurrencies backed by gold have benefited from this trend, with tokens like Paxg and Xaut seeing online performance with that of precious metal. These tokens, backed by physical gold stored in vaults, have overcome the broader cryptocurrency market amid uncertainty.
CITI has adjusted its short -term gold price objective to $ 3,000 per ounce and increased its average forecast for the year to $ 2,900, compared to $ 2,800, PakGazette reports. Behind his walk not only the factors mentioned above, but also the global growth concerns that are expected to boost the demand for precious metal.
Meanwhile, UBS walked its gold price target from 12 months to $ 3,000 per ounce, compared to $ 2,850. The precious metal has already violated the latter, currently contributing to $ 2,860 after increasing around 9% of the date.
UBS strategists led by Mark Haefele said in a note that Gold’s “lasting attraction as a reserve of value and coverage against uncertainty has demonstrated again.” Meanwhile, Citi’s note points to “commercial wars and geopolitical tensions that reinforce the reserve diversification/defolarization tendency and the official demand of the official emerging market (EM).”
Read more: arises from cryptocurrencies backed by gold when precious metal reaches a record amid the concern of the commercial war
