Gold Price Rises As Investors Flock To Safe Haven Amid Growing Uncertainties: Analyst Predicts This Level If Conditions Deteriorate

Gold prices continued to surge on Tuesday, extending an increase in the prices of the yellow metal as investors flocked to the safe-haven asset amid growing geopolitical and economic uncertainties.

Spot gold prices surged past the $3,500 per ounce barrier on Tuesday, rising on the back of increased hopes of the Federal Reserve cutting interest rates at the upcoming Federal Open Market Committee (FOMC) meeting later this month.

According to a report by The Guardian, UBS Global Wealth Management’s chief investment officer, Mark Haefele, stated that gold prices are expected to surpass the $3,700 per ounce level by June 2026, as the safe-haven asset benefits from ongoing uncertainties. Haefele also thinks that gold could breach the $4,000 barrier if geopolitical and economic conditions deteriorate.

Spot gold prices were up 0.17% at the time of writing. Over the past month, the commodity has appreciated by 3.54%, while its one-year returns have exceeded 39%.

Another factor contributing to the surge in gold prices is the increase in gold held by foreign central banks. According to a report by Investing.com citing data from Bloomberg and Crescat Capital’s Tavi Costa, foreign central banks now hold more gold as a percentage of foreign reserves than U.S. Treasuries for the first time since 1996.

Meanwhile, ahead of the upcoming FOMC meeting, the CME FedWatch tool indicates a 89.8% probability of the Fed cutting interest rates by 25 basis points.

Meanwhile, U.S. equities declined in Tuesday’s opening trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 1.14%, while the Invesco QQQ Trust (QQQ) declined 1.49%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

The SPDR Gold Shares ETF (GLD) was up 0.9% at the time of writing, while the iShares Gold Trust ETF (IAU) was up 0.84%.

Also See: Silver Price Today: Here’s Why The Commodity Is Drawing Investor Attention

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