Gold Could Hit $3,800 an Ounce by End of 2025

 Gold Will Go Up a Lot

• UBS, the Swiss bank, has increased its prediction for gold’s price. They now believe gold will cost $3,800 per ounce by the end of 2025. Before, they had a lower target.
• They also expect gold to reach about $3,900 per ounce by the middle of 2026.

Why UBS Thinks This Will Happen

• They expect the U.S. Federal Reserve will cut interest rates. Lower rates tend to make gold more attractive.
• The U.S. dollar is likely to get weaker, which also helps gold’s price go up (because gold becomes cheaper for people using other currencies).
• There are global political tensions and uncertainty, which makes people want “safe” investments. Gold is one of them.

Other Details

• By end-2025, the total amount of gold held in ETFs (funds people can buy shares of to own a tiny part of gold holdings) will pass 3,900 metric tons — almost reaching the previous record from October 2020.
• Central banks (governments’ reserve banks) are expected to keep buying a lot of gold — about 900-950 tonnes in 2025. That’s slightly less than last year’s near-record amount.

What Could Go Wrong

• One big risk: if inflation rises faster than expected, the Fed might be forced to raise interest rates instead. Higher rates make gold less attractive.