As trade war clouds gather, Wall Street’s financial giants like Citi (C) and UBS (UBS) are putting their money on gold, betting that its price will only keep climbing. This week, amid mounting geopolitical tensions and central banks hoarding more gold, these financial behemoths have dialed up their price forecasts, signaling a robust future for the yellow metal.
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In fact, Investing.com reported that Citi has nudged its short-term target for gold to $3,000 per ounce, a jump from the previous $2,800. This price target has been fueled by growing concerns over international trade disputes.
Crypto Gold Gains Ground
Not to be outdone by their tangible counterparts, gold-backed digital tokens like PAXG and XAUT are enjoying their moment in the sun. As real gold prices inflate, these digital assets, tethered to physical gold stored securely in vaults, are performing impressively. Amidst market uncertainty, investors are increasingly turning to these hybrid investments that combine the reliability of gold with the flexibility of cryptocurrency.
The Safe-Haven Asset Shines
With the U.S. and China locking horns over trade policies, gold’s allure as a safe-haven asset is shining brighter than ever. According to Reuters, spot gold climbed to $2,861.46 per ounce, marking a sixth week of gains. “The central focus of the gold market continues to be the uncertainty in regard to the Trump tariff policies,” said David Meger, director of metals trading at High Ridge Futures. This sentiment is echoed across financial strategies, as investors flock to gold, seeking security against the stormy backdrop of international trade disputes.
Despite a robust U.S. job market, with the Labor Department reporting 143,000 new jobs in January, uncertainties around trade tariffs and their impact on economic policies keep investors nervous and gold attractive. As the Federal Reserve grapples with these mixed signals, the future of gold looks not just bright, but golden.
Which Is the Best Stock for Gold?
For investors interested in investing in gold, we have rounded up the best gold stock that Wall Street analysts are bullish or cautiously optimistic about using the TipRanks Stock Comparison tool. From this comparison, it appears that analysts are bullish about Wheaton Precious Metals (WPM) and Rio Tinto (RIO)
