UBS maintained its bullish forecast for gold over the coming year, as it said that the precious metal may witness new record highs in 2025, although year-on-year gains may be slower than this year.
The market is likely to remain supported by continued purchases from the official sector at historically high levels and resilient physical demand, but they also expect that gold prices will be slightly lower at 2900 dollars per ounce at the end of 2025 against 3000 dollars per ounce previous forecasts, taking into account the current strength of the dollar after Trump won the presidency amid further US fiscal stimulus.
He also mentioned that gold movements in the near term may consolidate and tend to go up, but the weak trading volumes at the end of the year and the possible profit-taking may lead to some volatile price movements up and down.
So perhaps there is room to be more patient and selective about entry levels at the moment.
