UBS Analyst Forecasts Gold to Reach $2,600 by Year-End
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Gold prices have paused after reaching a historic peak of over $2,500, as investors await the Federal Reserve’s next move at the Jackson Hole symposium. UBS projects that gold could hit $2,600 by the end of the year, driven by safe-haven demand and potential Federal Reserve interest rate cuts. Federal Reserve Chair Jerome Powell’s upcoming speech at Jackson Hole could signal a rate cut, potentially impacting gold prices and market sentiment. Discover the latest insights on gold’s potential price movements as investors eye the Federal Reserve’s next move. Navigate through geopolitical tensions and central bank actions with our in-depth analysis. Gold Prices Stabilize After Hitting Record Highs Recently, gold prices soared past the $2,500 mark, only to stabilize shortly after. This surge was fueled by robust safe-haven demand and growing expectations of a looming interest rate cut from the Federal Reserve. Investors are now keenly observing the Fed’s upcoming decisions, especially Jerome Powell’s speech at the Jackson Hole symposium scheduled for Friday. UBS Analyst Predicts Year-End Gold Price of $2,600 According to UBS analyst Giovanni Staunovo, despite gold’s recent peak, prices could potentially rise further, reaching $2,600 per ounce by year-end. Staunovo anticipates that Powell might signal a rate cut, opting for a 25 basis point reduction over a more aggressive 50 basis point cut. This potential shift in monetary policy could influence gold prices significantly. Market Awaits Federal Reserve’s Next Move The anticipation surrounding Powell’s speech is palpable, given its potential to provide critical insights into the Fed’s monetary policy direction. Historically, the Jackson Hole symposium has been a platform for Fed Chairs to announce major policy changes. Expectations are that Powell will address the Fed’s dual mandate of maintaining price stability and maximum employment, focusing on how the central bank plans to navigate the current economic landscape marked…
Filed under: News - @ August 19, 2024 10:16 pm