Odaily News Financial institutions have raised their gold price forecasts as the metal has benefited from rising trade war concerns and central bank hoarding.
This week, strategists at Citigroup and UBS both raised their gold price forecasts, expecting the metal's bull run to continue as geopolitical tensions and economic uncertainty weigh on the market.
Gold-backed cryptocurrencies such as PAXG and XAUT have been benefiting from this trend, outperforming the broader cryptocurrency market in an uncertain environment.
Citigroup has adjusted its short-term gold price target to $3,000 an ounce and raised its average forecast for this year from $2,800 to $2,900, according to Investing.com.
Meanwhile, UBS raised its 12-month gold price target to $3,000 an ounce from $2,850. Gold is currently trading at $2,860 and has risen about 9% so far this year.
UBS strategists led by Mark Haefele said in a report that gold's "enduring appeal as a store of value and hedge against uncertainty has once again been demonstrated." Meanwhile, the Citi report noted that "trade wars and geopolitical tensions reinforce reserve diversification/de-dollarization trends and support gold demand in the emerging market (EM) official sector." (CoinDesk)