Gotrade News - Gold prices are projected to rise by 20% despite a nearly 4% dip in the past week. UBS predicts this positive trend will mirror the 22% increase in energy stocks since the beginning of the year.
Key Takeaways:
- Gold prices are expected to reach between USD 5,900-6,200/oz this year.
- The rise in energy prices and inflation pressures gold prices.
- Gold acts as a hedge against global economic risks.
Despite recent weakness, UBS forecasts a recovery for gold as Iran-Israel conflict relations unfold. Current high energy prices and inflation concerns weigh on gold's position.
The global economy's strained conditions add to the rise of the US dollar and speculations on interest rate hikes. UBS notes that gold rarely suffers significant declines during geopolitical conflicts.
Bitcoin has also recorded a significant rise since the Iran conflict, outperforming global indices and gold. However, short-term projections suggest this rally might reverse next month.
Nevertheless, UBS believes that gold will follow patterns witnessed in previous conflicts, leveraging changes in economic dynamics as a main driver.
In an investment context, gold is considered a safeguard against long-term threats like currency devaluation and economic slowdown. This is the primary reason UBS forecasts a substantial surge in gold prices soon.
Investor confidence is expected to rebound, observing gold's stability during past international conflicts. This recovery will depend on economic policy and broader market sentiment shifts.
Reference:
- Bloomberg, Fed Interest Rate Decision Must Weigh Iran War, Inflation, Slow Growth. Accessed on March 18, 2026
- Axios, Top Trump intel official resigns over Iran war: "No imminent threat". Accessed on March 18, 2026
- Barchart, Crude Oil Prices Gain as Iran Renews Attacks on Middle East Energy Infrastructure. Accessed on March 18, 2026
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