UBS made a positive forecast for gold prices.

UBS Expects a Rise in Gold Prices

Recently, gold prices experienced the fastest decline in 13 years. However, in January, gold still gained 13% in value. UBS expects two interest rate cuts from the Fed this year, while noting that the Fed has not indicated any policy changes.

World Gold Council's Report Increased Price Expectations

Despite the recent decline, UBS raised its price expectations following a strong demand report released by the World Gold Council. UBS predicts that in the coming days, gold prices will consolidate between 4,500-4,800 dollars/ounce and expects a move towards 6,200 dollars by mid-year.

Market Dynamics and Demand Forecasts

In its report, UBS stated, "We believe that in the coming days, gold prices will consolidate around 4,500-4,800 dollars/ounce until fundamental factors become more significant. The decline in real interest rates in the U.S. and geopolitical uncertainties have increased central bank purchases and seen a rise in ETF inflows. This situation is also raising demand expectations for bullion and coins," the statement read.

Gold's Attractive Investment Opportunities

In the bank's assessment, UBS mentioned that it is maintaining its gold position within global asset allocation, saying, "The recent decline offers investment opportunities for income-seeking investors to take advantage of high price volatility."