Is gold heading towards $3200, or will it drop to $2850? Here are the influencing factors!

UBS Bank has raised its gold price forecast to $3,200 per ounce by next June, up from its previous prediction of only $3,000, attributing this increase to the rising global geopolitical tensions, which have boosted demand for the precious metal as the primary safe haven for investors during times of crisis.

The Swiss bank confirmed in its report that gold continues to attract investors seeking protection from economic risks and geopolitical volatility, expecting strong demand for gold to persist amid ongoing turmoil. The report highlighted that global monetary policy trends, uncertainty in markets, and inflationary pressures will remain key factors supporting the rise in gold prices in the coming months.

In a related context, UBS warned that any changes in U.S. trade policies could affect gold prices, noting that if President Donald Trump were to reverse his protectionist trade policies, gold prices might drop to $2,850 per ounce, which could limit the gains of the precious metal in the near future.

This update on gold forecasts comes amid strong fluctuations in financial markets, as investors seek to strengthen their positions in safe assets to protect their investments from potential risks in the upcoming period.

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