Gold Price Forecast: XAU/USD rally could extend beyond the recent record highs – UBS

Gold (XAU/USD) has now gained close to 19% since a recent low in October and almost 7% over the past month alone. Strategists at UBS analyze the yellow metal’s outlook.

Potential for a pullback in Gold in the near term

Part of the recent rally may reflect technical factors, as prices crossed key resistance levels. But while we see potential for a pullback in Gold in the near term, this does not mean the rally can’t go further over the coming year. 

We see Gold being supported by several trends: The Fed appears on track to cut rates. Central bank and investor buying of Gold should be supportive. Heightened geopolitical risk should also support Gold.