Major financial institutions have raised their predictions about the price of gold due to its ability to profit from escalating trade war concerns and central bank purchases. City and UBS financial strategists forecast a continued upward trend in gold prices due to geopolitical tensions and economic uncertainties. Cryptocurrencies backed by gold, such as PAX Gold (PAXG) and Tether Gold (XAUT), have also grown in sync with the rise in gold prices. These tokens, supported by physical gold, have outperformed other cryptocurrency tokens in the current unstable conditions. City has set a short-term gold price target of $3000 per ounce and increased the annual average from $2800 to $2900. This prediction, influenced by global economic growth concerns, is further reinforced by UBS’ 12-month forecast increase from $2850 to $3000. The current gold price has surpassed this initial target and is now trading around $2860, indicating a 9% growth from the beginning of the year. UBS strategists emphasize the stable appeal of gold as a store of value and economic risk hedge, while City points to trade wars and geopolitical tensions as demand boosters for gold in emerging markets.
