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Gold (GC=F) is in focus as its price hovers near an all-time high. UBS analysts have issued a bullish forecast, predicting that the precious metal could reach $2,600 per ounce by the end of 2024.
Catalysts hosts Seana Smith and Madison Mills break down the details, discussing potential market volatility risks that could drive a rally in gold prices.
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This post was written by Angel Smith
Let's take a look at gold futures. They're flat right now after hitting another all-time high. UBS analysts forecasting prices could reach $2600 an ounce by the end of the year. We're seeing some movement to the upside here. So they're above the flat line now, just up another 10th of a percent here, but I think it comes, it seems yet, I guess UBS is one of those on the maybe the more bullish side, seeing some more upside here in the longer term. But I think there is kind of this notion, and there has been this narrative on the street that this rally that we have seen in gold, maybe could potentially be poised to cool just a bit. You talk about the fact that investors are scaling back their bets right now just in terms of when the Fed is going to cut, or maybe the scale as to which the Fed is going to cut, and obviously, Maddie, that has a direct correlation here to the likelihood of some of that pricing action we'll see in gold.
Yeah, we know that gold does well amid volatility, amid uncertainty, and upcoming election. Several global wars going on right now, geopolitical tensions, and then, of course, the market confusion that we've had over the past month or so, with things like the carry trade unwind and then you've got recessionary fears in the U.S. All of that creates like a bullish gold soup that can kind of come together to be good for gold. You can see those gains of nearly four and a half percent over the last three months. So it'll be interesting to see how gold continues in terms of catalysts moving forward as we do get closer to the election and if that is kind of a tipping point for the precious metal there.