UBS Bank forecasts the continued rise of gold in the coming period, driven by the Federal Reserve's easing of monetary policies, declining real interest rates, and a weakening US dollar. These factors combined put gold in a strong position to continue rising, making it the most attractive safe haven for investors worldwide.
Experts at the Swiss bank indicated that holdings in gold exchange-traded funds could reach 3,900 tons by the end of 2025, a level close to its historic peak, reflecting the significant demand for gold as a hedge against market volatility and the depreciation of currencies. This trend reinforces gold's position as a store of value and underscores its pivotal role in investment portfolios.
UBS noted that gold prices have risen by more than 40% since the beginning of 2025, trading at levels very close to their all-time highs, which reflects the strength of the upward trend that the yellow metal is experiencing. With real interest rates remaining at their lowest levels since 2022, the demand for gold is increasing as it represents one of the best investment alternatives that offers protection against the erosion of purchasing power.
UBS sees that the weakness of the US dollar plays a key role in enhancing gold gains, given the traditional inverse relationship between the American currency and the precious metal. As expectations continue that the Federal Reserve will maintain its monetary easing approach, this gives gold a strong boost to continue on a bullish path that may approach new historic highs.
Moreover, the outlook for gold is closely tied to global economic shifts, as demand for the metal increases with rising concerns about a slowdown in global growth. Investors regard gold as a means to protect capital in times of uncertainty, especially with ongoing geopolitical tensions that enhance its appeal as a safe haven.
Experts emphasize that the continued rise of gold may have repercussions on stock and currency markets, as some investors are driven to shift their liquidity from high-risk assets to safer ones. Furthermore, the increased demand for gold may impact central bank policies that hold strategic reserves of the yellow metal. All of this underscores the importance of gold as a key factor in shaping financial markets in the forthcoming period.
