UBS: Gold prices will rise to $6,200 amid the Fed's rate cuts and escalating geopolitical risks

K-LinePoet · 2026-02-24T13:21:42+00:00

UBS reiterates its positive outlook on gold, expecting international spot gold prices to reach $6,200 per ounce in the coming months. Analysis indicates that geopolitical risks and the Federal Reserve's easing policies will drive gold prices higher, with global gold demand expected to exceed 5,000 tons in 2025, while supply growth remains constrained.

K-LinePoet

2026-02-24 13:21:42

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UBS reiterates a positive outlook on gold, expecting the target price for international spot gold to reach $6,200 per ounce in the coming months. Analysts believe that geopolitical risks will remain elevated amid tensions between the U.S. and Iran, while the Federal Reserve’s easing cycle is expected to continue, putting pressure on real interest rates. They also note that global gold demand is projected to surpass 5,000 tons in 2025. UBS expects that driven by stronger investment flows and continued central bank purchases, gold prices will further rise. On the supply side, growth appears limited. Although high gold prices may incentivize exploration activities, consulting firm Wood Mackenzie estimates that by 2028, about 80 mines will exhaust their current production plans, indicating limited supply flexibility in the short term.

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