UBS increased its gold price forecast to $3,200 per ounce

UBS Group AG revised its gold price forecast higher, expecting prices to rise to $3,200 per ounce. The forecast is based on the intensifying tensions in global trade, causing stronger demand for safe haven assets. Analyzing the economic situation, bank experts noted growing importance of gold as a reliable tool for preserving wealth.

Pointing to Donald Trump's plans to impose new trade tariffs from April 2, the bank's analysts warn of risks for the global economy, which can spur demand for precious metals.

Growing fears of recession in the US, accompanied by expectations of interest rate cuts by the Federal Reserve System, create an environment favorable for investment in the precious metal, experts said. 

The positive dynamics is also supported by increasing inflows into gold ETFs. Meanwhile, central banks keep building up reserves of the metal, providing structural support for the market. UBS analysts recommend investors to consider gold as a long-term instrument for portfolio diversification.