Gold price will hit $6,200 by June, precious, industrial metals set for further gains as volatility eases – UBS' Schnider

UBS Wealth Management's Head of Commodities, Dominic Schnider, has delivered a bullish forecast for gold that could reshape investor strategies in 2024, projecting the precious metal will surge to an extraordinary $6,200 per ounce by mid-year. This prediction comes amid a complex global economic landscape where Federal Reserve policy uncertainty intersects with growing geopolitical tensions.

Schnider's analysis highlights multiple catalysts driving gold's potential ascent, including central bank demand, substantial fiscal deficits, declining real US interest rates, and persistent geopolitical risks. The commodities expert suggests that while January saw significant price volatility, underlying fundamentals remain robust for precious metals and industrial commodities alike.

Particularly compelling is Schnider's recommendation for portfolio diversification. He advises investors without gold exposure to establish modest positions, while those with substantial gold holdings should consider broadening their commodity investments to include copper, aluminum, and agricultural assets. This strategy aims to capitalize on strategic buying opportunities across different commodity classes.

The UBS analyst emphasizes that commodities are poised to play a more prominent role in investment portfolios by 2026, driven by supply-demand imbalances, geopolitical complexities, and the ongoing global energy transition. His forecast suggests a strategic shift towards commodities as a hedge against systemic economic risks.

For precious metals investors, Schnider's analysis provides a compelling narrative of potential growth and strategic positioning. The projected gold price of $6,200 represents not just a dramatic increase, but a signal of broader economic transformations underway in the global financial system.