Gold warning from banks
The rise in precious metal prices has caused banks to revise their year-end forecasts upward. Commerzbank and UBS have updated their expectations for gold and other metals.
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Geopolitical risks and economic indicators in global markets are leading to significant fluctuations in the prices of precious metals. The interest rate policy of the US Federal Reserve (Fed) and tensions in the Middle East have caused metals such as gold, silver, and platinum to gain value. These developments have led banks to re-evaluate their year-end forecasts.
German banking giant Commerzbank has raised its year-end price forecasts for precious metals. The bank increased its price expectation for silver from 41 dollars to 43 dollars per ounce. Additionally, it raised its gold price forecast for the end of 2026 from 3,600 dollars to 3,800 dollars, and its platinum price forecast for the end of 2025 from 1,350 dollars to 1,400 dollars.
Swiss bank UBS has also revised its expectations for gold prices upward. Pointing to factors such as the Fed's interest rate cuts and the weakening of the dollar, the bank increased its gold price target for the end of 2025 by 300 dollars to 3,800 dollars per ounce, and for mid-2026 by 200 dollars to 3,900 dollars per ounce. UBS also stated that it expects gold exchange-traded fund (ETF) holdings to rise to just over 3,900 tons by the end of 2025, approaching previous record levels.
These developments are increasing investor interest in precious metals while strengthening expectations that new records could be broken in the markets.