Spot gold is trading $3,735.66 per ounce today, down $0.43, on Thursday September 25th, while silver advanced to $44.52 per ounce, a jump of $0.63. Both metals benefited from fresh economic data showing rising U.S. jobless claims and increased expectations for Federal Reserve rate cuts, which sent the dollar lower and strengthened investor demand for safe-haven assets. The weekly initial jobless claims data came in at 240,000, exceeding forecasts and highlighting persistent labor market weakness. Investors are eagerly awaiting the release of the August Core PCE Index—widely watched as the Fed’s preferred inflation metric—which may help confirm the policy outlook. These developments contributed to robust price action and renewed speculation about more rate cuts before year-end.
A recent UBS Chief Investment Office report titled “Go for Gold” echoes current market sentiment, citing several reasons for continued bullishness in the physical gold market. The report forecasts global gold demand in 2025 to reach around 4,850 metric tons—the highest since 2011—and predicts gold prices could rise to $3,800 per ounce by the end of the year and $3,900 by mid-2026. UBS highlights gold’s role as a portfolio diversifier and hedge against political and economic risk, noting that investment demand remains strong but below historical ETF and speculative positioning highs, signaling further upside potential. Other supporting factors include central bank purchases and expectations of falling real interest rates as policymakers respond to sticky inflation and economic uncertainty. The report concludes that a mid-single-digit gold allocation in investment portfolios is favored, with further US dollar weakness likely as the Fed continues its policy easing, amplifying gold’s safe-haven appeal for global investors.
