UBS: U.S. rate cuts and escalating geopolitical risks will push gold prices to $6,200

GateUser-6433627c · 2026-02-24T00:06:33+00:00

UBS reiterates an optimistic outlook for gold, expecting the price to reach $6,200 per ounce in the coming months. Geopolitical risks and the Federal Reserve's accommodative policies will drive gold demand, which is expected to exceed 5,000 tons by 2025, while supply faces constraints.

GateUser-6433627c

2026-02-24 00:06:33

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On February 24, UBS reiterated its positive stance on gold, expecting the target price for international spot gold to reach $6,200 per ounce in the coming months. Analysts believe that geopolitical risks will remain high amid tensions between the United States and Iran, while the Federal Reserve’s easing cycle is expected to continue, putting pressure on real interest rates. Analysts pointed out that global gold demand will surpass 5,000 tons in 2025. UBS expects that, driven by stronger investment flows and continued purchases by central banks around the world, gold prices will further rise. On the supply side, growth appears to be limited. Although high gold prices may incentivize exploration activities, consulting firm Wood Mackenzie estimates that by 2028, about 80 mines will exhaust their current production plans, indicating limited supply elasticity in the short term. (Jin10)

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