Gold Price to Stay High as Investors Fear Missing Out

Gold is expected to end the year at $2,400/oz, up from $2,200/oz, as investors fear missing out on its rally. UBS predicts gold could reach as high as $2,500/oz. The bank believes that Fed easing and the outlook for lower real rates are the main drivers for bullish gold views. Gold closed last week at a record high of $2,398.40/oz and is up 16% this year.

Gold declined in the early morning Asian session as a likely technical correction after a run of gains. It marked a fifth straight weekly gain last week - the longest winning streak since January 2023. The breakdown of key short-term support levels could indicate a bearish trend. Initial support to watch is around $2,360/oz, according to a market analyst. Spot gold is down 0.4% at $2,383.23/oz.