UniCredit maintains year-end gold forecast

The bank noted that gold prices could remain volatile in the short term and emphasized that the upper end of the range, $4,500, should not be interpreted as a guaranteed upside target. Elevated real Treasury yields in the United States and expectations of restrictive Federal Reserve monetary policy were cited as key factors weighing on gold prices.

UniCredit stated that weakening confidence in the U.S. dollar and continued gold purchases by central banks could support demand for the precious metal. Concerns over rising U.S. government debt and budget deficits could also strengthen demand for safe-haven assets. According to the bank, gold's future direction will largely depend on Fed interest rate decisions, U.S. economic data, movements in the dollar, and changes in bond yields.