Gold price forecasts raised

UBS and Commerzbank raised their gold price forecasts on Friday, joining other investment banks as investors drive the safe-haven metal to record highs amid the economic uncertainty sparked by US President Donald Trump's trade policies, reports Reuters.

Trump's tariffs have roiled financial markets, stoking fears of inflation and a global recession. While he has paused most duties, he has hiked those on China to 145 per cent, prompting Beijing to lift its tariffs on US goods to 125 per cent.

Gold prices breached $3,200 an ounce for the first time on Friday. Prices are up more than 22 per cent so far this year.

Commerzbank also raised its gold price forecast for the end of this year to $3,000, from $2,850, noting that assets under management in gold exchange-traded funds were a record $345.5 billion at the end of March.

Earlier this week, Deutsche Bank raised its average gold price forecasts for 2025 and 2026 to $3,139 and $3,700 per ounce respectively.