Even after notching strong gains so far in 2025, gold still has ample room to “run higher” as macroeconomic concerns linger, according to UBS. “The case for adding gold allocations has become more compelling than ever in this environment of escalating tariff uncertainty, weaker growth, higher inflation and lingering geopolitical risks,” UBS analyst Joni Teves wrote in a Friday note. “The current backdrop wherein global trade, economic and geopolitical relationships may be changing reinforces the need to diversify into safer havens like gold.” Bullion has surged 23% so far this year, while the S & P 500 has slipped 10.6%. Investors are jittery over the implications of President Donald Trump’s tariffs , which have both stoked market unease and also raised fears that the U.S. could be heading for a recession . Teves’ $3,500 per ounce price target for gold implies roughly 10% further upside for the precious metal. Gold hit a fresh record on Friday , surpassing the $3,200 level, as investors seek safe havens. Gold is often touted as a hedge against inflation and has historically been an asset for investors seeking to ride out macro uncertainty. The analyst said she expects a strong appetite for bullion to come from broad sources that include both retail investors as well as private wealth and asset managers. “In the current macro environment, we think the ratio of gold positions to total funds’ assets has the potential to exceed the levels reached in 2020, though may not necessarily get to the peak in 2012/2013,” Teves said. “The increase in demand and the limited ability of supply to react could intensify market liquidity issues and exaggerate price moves, especially in these volatile markets.” Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
