Gold futures rebound amid geopolitical uncertainty
Press Hub UCapital
Share:
Gold futures posted notable gains on Thursday, recovering partially from Wednesday's significant sell-off. Prices advanced by 1.4%, reaching $3,341.0 per troy ounce, following a sharp correction from Tuesday's record high of $3,509.90 per ounce—the first time gold crossed the critical $3,500 threshold. Wednesday’s correction saw gold briefly fall to $3,270.80 per ounce amid renewed risk-on sentiment across markets.
Despite recent volatility, analysts from MUFG remain bullish on gold's medium-term prospects, asserting that the underlying drivers supporting the precious metal remain intact. They highlight that gold continues to serve as a critical hedge against ongoing geopolitical tensions and broader financial risks. Additionally, consistent central bank buying and strong ETF inflows are likely to underpin demand.
Further strengthening gold’s appeal is the expectation of potential interest rate cuts, which could bolster demand for non-yielding assets such as gold. Given these factors, MUFG forecasts gold prices reaching $3,850 per ounce by year-end, with potential to exceed $4,000 per ounce by the second quarter of 2026.
Investors should closely monitor central bank actions, ETF inflows, and geopolitical developments as primary indicators influencing gold's trajectory in the near to medium term.
Despite recent volatility, analysts from MUFG remain bullish on gold's medium-term prospects, asserting that the underlying drivers supporting the precious metal remain intact. They highlight that gold continues to serve as a critical hedge against ongoing geopolitical tensions and broader financial risks. Additionally, consistent central bank buying and strong ETF inflows are likely to underpin demand.
Further strengthening gold’s appeal is the expectation of potential interest rate cuts, which could bolster demand for non-yielding assets such as gold. Given these factors, MUFG forecasts gold prices reaching $3,850 per ounce by year-end, with potential to exceed $4,000 per ounce by the second quarter of 2026.
Investors should closely monitor central bank actions, ETF inflows, and geopolitical developments as primary indicators influencing gold's trajectory in the near to medium term.