Gold holds path to new highs as demand stays strong

UBS Investment Bank points to central bank buying and steady investor demand supporting prices.

Gold remains in a strong position to potentially reach fresh highs this year, supported by steady demand from both private investors and central banks as uncertainty across global markets keeps the metal in focus. Buying interest has stayed broad-based, with gold increasingly treated as a core holding rather than a short-term hedge.

UBS Investment Bank sees this backdrop as supportive of further upside, pointing to continued accumulation from official institutions as a key pillar helping absorb supply and limit deeper pullbacks. Investor positioning is also seen as relatively light, leaving room for additional inflows if prices dip toward key psychological levels like $4,000.

The Philippine connection

In the Philippines, gold often becomes more closely watched when the peso weakens or import costs rise, with households, jewelers, and investors turning to it as a store of value that can hold through volatility. Local demand also tends to strengthen during seasonal jewelry buying periods and savings cycles, reinforcing its dual role as both an investment asset and a traditional store of wealth in Filipino portfolios.

With demand drivers still intact and no major slowdown in institutional buying, the longer-term trajectory for gold continues to lean upward, with consolidation phases seen more as accumulation windows than reversals.

 

 

Gold is eyeing new territory. With central banks buying and investors holding firm, UBS predicts gold could hit $4,000.