UBS: With Rate Cut in Sight and Geopolitical Risks Rising, Gold Could Head to $6,200

BlockBeats News, February 24th, UBS reiterated its positive stance on gold, expecting the international spot gold price to reach $6200/oz in the coming months. Analysts believe that geopolitical risks will remain high amid the US-Iran tensions, while the Fed's loose monetary policy is expected to continue, putting pressure on real interest rates.

The analyst pointed out that global gold demand surpassed 5000 tons in 2025, and UBS expects that, driven by stronger investment flows and continued purchases by various central banks, the gold price will further rise. On the supply side, growth appears to be limited.

Although the high gold price may incentivize exploration activities, consulting firm Wood Mackenzie estimates that by 2028, about 80 mines will deplete their current production plans, indicating limited supply elasticity in the short term. (Golden Finance)