Here is the rewritten content in a well-organized HTML format with all tags properly closed:
Major Financial Institutions Raise Gold Price Forecasts Amid Trade War Fears and Central Banks’ Accumulations
Gold’s Enduring Appeal as a Store of Value and Hedge Against Uncertainty
Major financial institutions have been increasing their gold price forecasts as the precious metal’s price benefits from growing trade war fears and central banks’ accumulations. This week, strategists at both Citi and UBS issued increased gold price forecasts, anticipating the precious metal’s bull run will continue as markets are pressured by geopolitical tensions and economic uncertainties.
Gold-Backed Cryptocurrencies Surge as Precious Metal Hits Record Amid Trade War Worry
Gold-backed cryptocurrencies, such as PAXG and XAUT, have been benefiting from this trend, with tokens seeing performance in line with that of the precious metal. These tokens, backed by physical gold stored in vaults, have been outperforming the wider cryptocurrency market amid the uncertainty.
Citi Adjusts Short-Term Gold Price Target to $3,000 per Ounce
Citi has adjusted its short-term gold price target to $3,000 per ounce and increased its average forecast for the year to $2,900, up from $2,800. According to Investing.com, behind its hike were not only the factors cited above but also global growth concerns expected to drive demand for the precious metal.
UBS Hikes 12-Month Gold Price Target to $3,000 per Ounce
Meanwhile, UBS hiked its 12-month gold price target to $3,000 per ounce, up from $2,850. The precious metal has already breached the latter, currently trading at $2,860 after rising about 9% year-to-date.
Strategies Behind the Hikes
UBS strategists, led by Mark Haefele, said in a note that gold’s "enduring appeal as a store of value and hedge against uncertainty has again proven itself." Citi’s note points to "trade wars and geopolitical tensions reinforcing the reserve diversification/de-dollarization trend and supporting emerging market (EM) official sector gold demand."
Conclusion
As major financial institutions continue to raise their gold price forecasts, it’s clear that the precious metal is poised for a sustained bull run. With gold-backed cryptocurrencies also benefiting from this trend, investors may want to consider diversifying their portfolios with these tokens. As the global economy faces uncertainty and geopolitical tensions rise, gold remains a reliable store of value and hedge against uncertainty.
FAQs
Q: What are the reasons behind the increased gold price forecasts?
A: Major financial institutions are citing growing trade war fears and central banks’ accumulations as key factors driving the price of gold.
Q: Which gold-backed cryptocurrencies have been benefiting from this trend?
A: PAXG and XAUT, backed by physical gold stored in vaults, have been outperforming the wider cryptocurrency market amid the uncertainty.
Q: What are the key takeaways from the Citi and UBS notes?
A: According to Citi, global growth concerns are expected to drive demand for the precious metal, while UBS strategists point to gold’s enduring appeal as a store of value and hedge against uncertainty.
