Gold prices are on track to hit $2,100 by the end of the year, according to a new report by UBS. The investment bank said that the precious metal is being supported by a number of factors, including rising inflation, geopolitical uncertainty, and a weak U.S. dollar.
"We see gold prices rising to $2,100 per ounce by the end of 2023," said UBS analyst Giovanni Staunovo. "The yellow metal is being supported by a number of factors, including rising inflation, geopolitical uncertainty, and a weak U.S. dollar."
Inflation has been rising in recent months, reaching a 40-year high in the United States. This has led to increased demand for gold, which is seen as a hedge against inflation.
Geopolitical uncertainty is also supporting gold prices. The war in Ukraine and the ongoing tensions between the United States and China have created a risk-off environment, which has led investors to buy gold.
The U.S. dollar has also been weakening in recent months, which has made gold more attractive to investors. A weak dollar makes gold cheaper for buyers who hold other currencies.
UBS is not the only investment bank that is bullish on gold. Goldman Sachs and Morgan Stanley have also said that they expect gold prices to rise in the coming months.
If UBS's prediction is correct, it would be the first time that gold has reached $2,100 per ounce since 2011.