Due to escalating trade war concerns and increased holdings by the Central Bank, major financial institutions have raised their gold price forecasts.

Due to escalating trade war concerns and hoarding by Central Banks around the world, major Financial Institutions have raised their gold price forecasts. This week, strategists at Citi and UBS have both raised their gold price forecasts, expecting the bull market for gold to continue due to geopolitical tensions and economic uncertainty putting pressure on the market. PAXG and XAUT and other gold-backed cryptocurrencies have benefited from this trend, outperforming the broader cryptocurrency market in uncertain environments. According to Investing.com, Citigroup has adjusted its short-term gold price target to $3,000 per ounce and raised this year’s average forecast from $2,800 to $2,900. Meanwhile, UBS has raised its 12-month gold price target from $2,850 per ounce to $3,000 per ounce. Gold is currently trading at $2,860, up about 9% year-to-date. UBS strategist Mark Haefele said in a report that gold has once again proven its enduring appeal as a store of value and hedge against uncertainty. Meanwhile, Citigroup’s report noted that ‘trade tensions and geopolitical tensions have strengthened the trend of reserve diversification/de-dollarization, supporting gold demand from official sectors in emerging markets (EM).’ (CoinDesk)