Expectations of gold to 3200 dollars an ounce driven by the risks of trade

The Swiss Bank of UBS raised its forecast for gold prices to $ 3,200 an ounce in the next four quarters by increasing the previous 3 thousand dollars with the increasing possibilities of a long global trade war, a scenario that analysts expect to continue to push investors to purchase more safe haven assets.

The bank referred to the plan of US President Donald Trump to impose large -scale mutual customs definitions and additional customs tariffs for specific sectors on April 2, as a risky event that may stimulate continuous demand for safe haven in the markets.

It is expected that gold – which exceeded $ 3,000 an ounce for the first time ever last Friday – will also benefit from the deterioration of the expectations of the American economy, as traders are now evaluating the possibility of the Federal Reserve Conduct additional discounts in interest rates with increasing concerns about stagnation.

Thus, UPS Bank joined a number of other banks that raised in recent weeks its price goals for the yellow metal, and last week the McKiri Group expected the price of prices to rise to 3500 dollars an ounce in the second quarter, while the BNB Bank raised its forecasts to show a average rate higher than 3 thousand dollars.

Trading prices

Gold rose today, Monday, after it touched a historical level last week, with the continued increase in demand for safe havens due to the continued geopolitical tensions and anxiety over customs duties, the escalation of commercial differences and the increase in hopes for reducing the Federal Reserve (the US Central Bank) interest rates.

In the latest transactions, the ounce of gold increased 0.36% to 2995.34 dollars, while US futures settled at $ 3002.70 an ounce.

“The last rise in gold prices was driven by inflationary recession.”

The confidence of the American consumer fell to the lowest level in about two and a half years in March, and the expectations of inflation increased, amid fears that the comprehensive customs duties imposed by President Donald Trump that sparked a trade war will enhance prices and undermine the economy.

Geopolitical tensions continued with the United States vowing to continue to attack the Houthis in Yemen to end their attacks on ships, while Israeli military strikes killed at least 15 Palestinians in the Gaza Strip during the past 24 hours.

Gold – which is a hedge against political risks and inflation – has achieved about 14% since the beginning of this year.

The markets are now awaiting the US Monetary Policy meeting tomorrow, Wednesday, followed by the speech of bank President Jerome Powell.

As for other precious metals:

• Silver rose 0.08% to $ 33.8 an ounce.
• Platinum increased 0.36% to 999 dollars.
• Palladium rose 1.16% to $ 976.21 an ounce.