Gold Price Forecasts Raised as Trade War Fears and Central Bank Buying Persist

Major financial institutions, including Citi and UBS, have raised their gold price projections as geopolitical tensions and central bank gold accumulations continue to drive demand for the precious metal. With global markets facing growing uncertainty, gold’s enduring status as a hedge against volatility is once again in the spotlight.

Gold Price Rally to Continue?

Citi recently revised its short-term gold price target to $3,000 per ounce, up from its previous estimate of $2,800. The bank now expects the average price for the year to hit $2,900, citing concerns over global economic growth and geopolitical tensions as key factors behind the adjustment.

Meanwhile, UBS has also increased its 12-month gold price forecast to $3,000 per ounce, up from $2,850. Gold has already breached that previous target, currently trading at around $2,860 after rising approximately 9% year-to-date.

In a note to clients, UBS strategists led by Mark Haefele emphasized gold’s continued role as a “store of value and hedge against uncertainty.” Similarly, Citi highlighted how the ongoing trend of reserve diversification and de-dollarization, particularly in emerging markets, is bolstering gold demand from official sectors.

Gold-Backed Cryptocurrencies See Growth

As gold prices surge, gold-backed cryptocurrencies like Pax Gold (PAXG) and Tether Gold (XAUT) are gaining traction. These digital assets, backed by physical gold stored in secure vaults, have been outperforming the broader cryptocurrency market amid economic uncertainty.

With their value closely tied to the performance of the precious metal, these tokens offer investors an alternative avenue to gain exposure to gold without needing to hold physical bullion.

The financial turbulence and trade war fears driving gold’s bull run have further cemented its appeal, both in traditional markets and within emerging digital ecosystems.

As global markets remain pressured by geopolitical risks, analysts anticipate that gold’s role as a safe-haven asset will persist, potentially driving more interest toward tokenized gold offerings. With both Citi and UBS betting on continued upward momentum, investors are closely watching whether the precious metal will hit the projected $3,000 mark.