UBS now expects gold to hit $3,800/oz by the end of 2025, up from its earlier forecast of $3,500. By mid-2026, the bank projects prices around $3,900/oz, compared with a previous estimate of $3,700 for mid-2025.

The upgrade reflects expectations that the Federal Reserve will resume its easing cycle amid weak U.S. labor data, boosting investor appetite for the safe-haven asset. Geopolitical uncertainties are also supporting demand, UBS noted.

The bank forecasts ETF holdings will climb close to record highs of just over 3,900 metric tons by late 2025 and says it remains long gold in its global asset allocation.

Spot gold last traded 0.5% higher at $3,651.49.