3.17.26 - Gold Prices On Track For a 20% Surge

3.17.26 - Gold Prices On Track For a 20% Surge

Gold last traded at $5,006 an ounce. Silver at $79.62 an ounce.

Against that backdrop, some analysts believe gold may be poised for its next major move, with a potential 20% upside on the horizon.

Gold Prices On Track For a 20% Surge: UBS Prediction -Watcher.Guru

Gold prices have fallen nearly 4% in a week despite the conflict in Iran and Israel escalating. The XAU/USD index has cooled down in March, while leading cryptocurrencies such as Bitcoin have spiked 10%. The safe haven nature of the precious metal is jittery as traders are now taking calculated steps.

However, the price grind for gold is only temporary, wrote UBS in a note to clients. The investment bank noted that prices are materializing and could see another sharp spike, similar to the rise of energy stocks. For the uninitiated, energy stocks have been on the rise after the war and are now among the top-performing equities.



The overall US energy sector has surged by nearly 22% year-to-date, making it a prime investment due to its pivot and support towards the AI industry. Gold prices will also replicate the energy sector, delivering double-digit gains again, according to UBS. "In the short term, higher energy prices and inflation worries have led to a stronger US dollar and concerns over potential rate hikes—both are negative for gold prices," wrote the bank.