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

Odaily Planet Daily News As gold prices benefit from rising trade war concerns and central banks' hoarding, major financial institutions have raised their gold price forecasts. This week, strategists at Citi and UBS both raised their gold price forecasts, expecting the gold bull market to continue as geopolitical tensions and economic uncertainty weigh on the market. Gold-backed cryptocurrencies 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 raised its 12-month gold price target from $2,850/ounce to $3,000/ounce. Gold is currently trading at $2,860 and has risen about 9% so far this year. UBS strategists led by Mark Haefele said in a report that gold's "enduring appeal as a store of value and hedge against uncertainty has once again been demonstrated." Meanwhile, the Citi report noted that "trade wars and geopolitical tensions have reinforced reserve diversification/de-dollarization trends and supported gold demand in the emerging market (EM) official sector." (CoinDesk)