Gold is poised for further gains in 2025, currently trading at approximately $2,650 per ounce. According to UBS strategists, this yellow metal has surged by 28% year-to-date, outperforming the S&P 500 significantly.

Key market drivers include:
Central Bank Accumulation: Central banks globally have increased their gold purchases, with October 2024 marking the highest levels recorded for the year. UBS forecasts continued demand, projecting over 900 metric tons for 2025.
De-dollarization Efforts: Many central banks are diversifying their reserves, reducing reliance on the US dollar, further fueling gold’s demand.
Safe Haven Appeal: Ongoing geopolitical tensions and market uncertainties are likely to boost investor interest in gold, especially through gold ETFs.