The main financial institutions have increased their gold price forecasts, as precious metal prices benefit from the growth of trade war fears and the accumulations of central banks.
This week, Citi and UBS strategists have issued increased gold price forecasts, providing that the precious metal bull will continue because the markets are pressed by geopolitical tensions and economic uncertainties.
Cryptocurrencies with golden back have benefited from this trend, with tokens like Paxg and XAUT seeing performance in accordance with those of precious metal. These tokens, supported by physical gold stored in the vaults, surpassed the wider market of cryptocurrencies in the midst of uncertainty.
Citi has adjusted its short -term gold price target to $ 3,000 per ounce and increased its average forecasts for the year to $ 2,900, against $ 2,800, reports PK Press Club. Behind his rise were not only the factors mentioned above, but also the global concerns of growth should stimulate the demand for precious metal.
Meanwhile, UBS has increased its 12 -month gold price target to $ 3,000 per ounce, compared to $ 2,850. The precious metal has already violated the latter, currently negotiating at $ 2,860 after having increased by approximately 9% year to date.
The UBS strategists led by Mark Haefele said in a note that “the sustainable call of Gold as a reserve of value and coverage against uncertainty has proven itself”. Meanwhile, Citi’s note points to “trade wars and geopolitical tensions strengthen the trend of diversification / delight of the reserve and gold demand from the Official Sector of the emerging market (EM)”.
Read more: Golden back cryptocurrencies grow while the precious metal strikes the record in the middle of the concern of the trade war
