UBS: Still optimistic about the long-term prospects of gold

Jin10 data reported on June 28, UBS stated that gold has been a leader among global asset classes in 2025 so far. With the continued purchasing of gold by Central Banks and the increasing trend of ETFs, data from the European Central Bank shows that gold has surpassed the euro to become the second largest reserve asset globally, after the US dollar. Although with optimistic expectations that the most severe phase of the trade war may be coming to an end, gold prices have slightly retreated from historical highs, we still remain optimistic about the long-term value of gold. We believe that falling real interest rates, a weakening dollar, high geopolitical risk premiums, and structural shifts in institutional gold purchasing will continue to provide support for gold prices. For example, data from the World Gold Council shows that over the past three years, the average annual gold purchases by various Central Banks have exceeded 1000 tons—more than double the average level of the previous decade.