Interest in gold from world central banks will remain high, despite the fact that last year they bought it in record quantities, says UBS. This year, the bank predicts their total purchases will be about 700 metric tons - less than last year, but still above the average since 2010. Against this background, the precious metal could go up in price to $2100 by the end of the year, and by March 2024 the quotes can reach $2200.
Continued demand for gold from central banks will contribute to high inflation and geopolitical risks, as well as the U.S. decision to freeze Russian assets, the bank said. Before that step regulators were focused on dollar, but after it they actively switched to the precious metal - according to the bank, it shows that they want to find a replacement for the U.S. currency. In addition, the latter is expected to fall, experts say, which will also support gold.