UBS sees gold at $2,500 by year-end with pickup in ETF buying likely ahead

UBS Monday raised its year-end gold price forecast to $2,500 an ounce, as it expects gold ETF holdings to increase once the Federal Reserve starts cutting rates around mid-year, with the metal already outperforming global equities despite a strong dollar. The Switzerland-based bank says, the recent rally in gold has evolved without traditional support from ETF buying, which it believes, will come when U.S. rates are cut—the next catalyst for higher prices. UBS upped its forecasts by $250/oz, expecting gold to trade at $2,300/oz in June and at $2,500/oz at end-2024 and end-March 2025. Spot gold (XAUUSD:CUR) was trading +0.3%…