FOMC sparks gold selloff, UBS sees long-term gains

UBS forecasts gold prices to reach $2,900/oz by the end of 2025, driven by central bank demand, increased investor interest, and a lower interest rate environment. UBS projects central bank purchases of 900 metric tons or more in 2025 as part of ongoing reserve diversification efforts.

From a technical perspective, the 100 and 200 weekly Simple Moving Averages (SMAs) continue to trend upward on the weekly chart, suggesting limited long-term bearish potential. However, resistance at $2,665 is currently restricting further upside movement.

In the short term, gold prices are experiencing notable declines following the latest FOMC rate decision, which has been interpreted as the Fed becoming more cautious about cutting in the future. Prices are nearing the 100 SMA, and traders will have to watch for a meaningful challenge to this support zone.