Financial institutions raise gold price forecasts as trade war fears mount and central banks increase holdings

Odaily Odaily report: Due to the increase in trade war concerns and the accumulation of gold by central banks around the world, major financial institutions have raised their forecasts for gold prices. This week, strategists from Citi and UBS have both raised their gold price forecasts, expecting the gold bull market to continue due to geopolitical tensions and economic uncertainty putting pressure on the market. Cryptocurrencies backed by gold such as PAXG and XAUT have been benefiting from this trend, outperforming the broader cryptocurrency market in an uncertain environment. According to Investing.com, Citi has adjusted its short-term gold price target to $3,000 per ounce and raised its average forecast for this year from $2,800 to $2,900. Meanwhile, UBS has raised its 12-month gold price target from $2,850 per ounce to $3,000 per ounce. Gold is currently trading at $2,860 and has risen about 9% so far this year. In a report led by Mark Haefele, UBS strategists stated that gold "has again proven its enduring appeal as a store of value and a hedge against uncertainty." Meanwhile, Citi's report pointed out that "the trade war and geopolitical tensions have reinforced the trend of reserve diversification/de-dollarization and supported official sector gold demand in emerging markets (EM)." (CoinDesk)