Gold breached the psychological $2,000 barrier last week for the first time since the war in Ukraine broke out last year. Economists at UBS forecast the yellow metal at $2,100 by the end of the year.

Downside risks to the USD have risen alongside money market pricing of Fed rate cuts

“Gold tends to rise in periods when the US Dollar is weakening, and downside risks to the greenback have risen alongside money market pricing of Federal Reserve rate cuts.”

“While volatility can be expected in the near term, we now expect the precious metal to hit $2,100 by year-end, and $2,200 by March 2024.”