Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
UBS has raised its 2025 gold price target to $3,200, not even two months into the year. This revised figure comes on the heels of rapid early growth with gold notching several record highs. Analysts pinpoint rampant uncertainty, robust central bank demand, sidelined retail investors, and an undercurrent of bullishness for the anticipated gains. The yellow metal’s rally could bolster the growth of other precious metals as investors weigh the possibility of an economic reversal.
Gold’s Flashy Start
Gold wasted no time cementing further highs in 2025, following a slight breather in late 2024. Prices are constantly testing the psychological barrier of $3,000. While the spotlight is shining on gold, precious metals posted the strongest January in years, rising nearly 9%—one of the highest-yielding commodity classes of the period.
Next Stop $3,200?
As UBS explains, “Gold’s enduring appeal as a store of value and hedge against uncertainty has again proven itself. We have therefore raised our gold forecasts.”
The bank’s revised $3,200 prediction marks a 6.67% jump from their previous target of $3,000. UBS is joined by several major financial institutions boosting their price predictions. Recently, Bank of America reported gold could reach $3,500 under the right conditions. Goldman Sachs said the yellow metal might hit $3,300 by year’s end if bullish trends continue.
What’s behind the price boost?
Widespread Uncertainty
“The rally in gold prices…suggests investors remain on edge,” explains UBS analysts.
Recent reports echo this sentiment, showing a sharp decline in consumer confidence as Americans grapple with a volatile economic and geopolitical landscape. Trump’s tariff threats could be the opening volley of a full-blown trade war. The investment bank even points to the national debt as a destabilizing force, pushing more people to gold. At the same time, uncertainty reigns in the Middle East and Eastern Europe as peace talks teeter.
Central Bank Buying
2024 marked the third consecutive year central banks bought more than 1,000 tons of gold. As the cornerstone of the metal’s value, national demand is a decisive indicator of future growth.
According to UBS, “Diversification and de-dollarization trends should lead to continued solid central bank demand in the coming years.”
This forecast is shared by the World Gold Council (WGC) which sees governments preferring gold over the dollar in 2025.
Sidelined Investors
Retail demand tends to lag behind central bank consumption as the general public awaits confirmation from whales. In 2025, these sideliners could further boost gold, even with prices sitting near all-time highs. UBS sees everyday investors more eager to join the game as the yellow metal proves its resilience and momentum. BofA even suggests gold could be safer than Treasury bonds.
Silver & Platinum Show Potential
With gold’s ongoing rally shining bright, investors risk overlooking other precious metals flashing bullish signals. Silver and platinum could outperform gold with higher yields on a percentage basis. In fact, both metals posted nearly a 9% surge in January, outrunning their golden counterpart. Notably, these smaller markets with greater exposure to industrial demand often experience greater volatility. Yet, as gold rises, the likelihood of higher returns on precious metals increases.