UBS: Still expects gold prices to reach $5,600 per ounce by the end of the year; silver prices are expected to reach $100.

Bloomberg Finance APP has learned that UBS precious metals strategist Joni
Teves said during a media conference call on Tuesday that UBS maintains its forecast for year-end gold and silver prices, respectively expected to reach $5,600 per ounce and $100, because the fundamental factors supporting precious metals’ trends remain intact.

Teves stated that since the outbreak of the Iran war, gold prices have been under pressure, but rising inflation and the Federal Reserve maintaining interest rates have led to compressed real interest rates, which will support gold.

Teves said that retail and institutional investors buying gold indicate that the theme of “diversified allocation” remains very solid.

She said that global central banks are “unlikely” to stop buying gold, nor are they likely to sell gold directly.

UBS believes that the recent consolidation in gold prices has allowed investors to rebuild their positions, and gold prices may even exceed their estimated levels.

UBS stated that silver will be driven by the rise in gold, and its own fundamentals also provide support. This year, silver demand may surpass supply, with strong investment demand from China, India, and the Middle East.