UBS Gold Price Forecast 2025: Pullback Temporary, Next Target $4200 - Exchange Rates Org UK

What the desk is arguing

UBS is forecasting a rebound in gold prices, anticipating that the challenges currently faced in the market will not hinder the longer-term bullish trend. They cite factors such as ongoing inflation and global uncertainty as critical drivers behind the anticipated price surge to $4,200.

This viewpoint underscores a temporary correction rather than a fundamental shift in gold demand dynamics. The market's recent fluctuations are dismissed as short-lived, with UBS emphasizing the enduring appeal of gold in uncertain economic climates.

Where it sits in our coverage

Our current consensus target for gold prices aligns with a broader expectation of upward movement, albeit at a more conservative estimate than UBS's lofty $4,200. We observe a firm spread around our target, reflecting a more tempered outlook among the majority of analysts compared to UBS's aggressive stance.

Notably, our internal targets for gold by the end of 2025 include forecasts from the following firms: - Goldman Sachs: $2,000 - Deutsche Bank: $2,100 - HSBC: $2,250

How other firms see it

The outlook presented by UBS significantly contrasts with other prominent analysts, who expect more moderate gains for gold. For instance, Goldman Sachs maintains a target of $2,000 and emphasizes the potential for a stronger dollar to temper gold's upside.

In comparison with UBS's optimism, other firms express skepticism about the sustainability of gold price increases in light of potential Federal Reserve rate hikes. Notably: - Goldman Sachs: Target $2,000 (cautious) - Deutsche Bank: Target $2,100 (moderate) - HSBC: Target $2,250 (measured)