UBS sees more upside for gold costs as central | Commodities
Investing.com — Gold demonstrated a sturdy efficiency in 2024, marking a 27% gain and reaching an all-time high of USD 2,788/oz on October 30. This increase represents the fifth straight yr of good points for the dear steel, with solely cocoa and occasional surpassing it within the commodity sector.
In keeping with UBS, central banks continued to be the mainstay of gold demand, with their purchases and the heightened world risk premiums driving gold costs. Regardless of the breakdown within the relationship between gold and actual rates of interest, these components have stored the gold market buoyant.
Preliminary estimates point out that central bank demand for gold in 2024 was round 1,000 metric tons (mt), barely decrease than the earlier two years. The yr 2022 noticed the best annual buy in historical past at 1,082 mt.
Diversification has been a essential consider gold’s record-breaking rally. This pattern is anticipated to proceed due to the ongoing trade and geopolitical uncertainty, together with issues over US authorities debt.
As a end result, sturdy official sector gold purchases and diversification demand from much less rate-sensitive elements of the investment neighborhood are anticipated to proceed. This results in a maintained long place on gold within the world strategy, with a goal of USD 2,850/oz by the top of the yr.
This text was generated with the assist of AI and reviewed by an editor. For more data see our T&C.
Keep up to date with the latest news within the commodities markets! Our web site is your go-to source for cutting-edge commodity news, market trends, insights, and updates on key assets. We offer every day updates to make sure you have entry to the freshest data on commodity actions, industry efficiency, provide and demand shifts, and main market bulletins.
Discover how these trends are shaping the longer term of world commodities! Go to us recurrently for essentially the most partaking and informative content material by clicking right here. Our rigorously curated articles will keep you knowledgeable on market shifts, investment methods, commodity evaluation, and pivotal moments within the world of assets.
