Gold has outperformed stocks, bonds, and bitcoin in 2025, with UBS Wealth Management turning bullish and raising price targets, driven by macroeconomic risks, de-dollarization trends, and central bank buying, with demand reaching its highest since 2011.
Citi forecasts that gold prices, currently near all-time highs, will decline by up to 25% by the end of 2026, citing a peak in demand and improving economic conditions that reduce its safe-haven appeal.
Gold prices dropped more than 2% on Friday as market expectations regarding interest rates continue to shift. However, many analysts remain bullish on gold due to the ongoing banking crisis and potential for safe-haven demand. The decline in global gold demand in Q1 2022 was led by investment demand, which fell 51% to 273.7 tonnes, but there is still solid growth potential for investment demand. The Fed's tightening of screws is creating pressures on other parts of the financial system, which could unravel relatively quickly, making it a good time to include some hedges in portfolios.