UBS Sees Room for Gold Price Growth Amid Rising Pressure

Gold prices have been rising steadily since August 21, reaching a high of $4,604.18 per ounce in a session that saw spot gold surpass its 200-day moving average.

According to UBS's Chief Investment Office (CIO), gold has increased by over 4.3% in the week and about 13% in the month at the time of their report release.

The investment firm believes that despite the recent surge, gold still has room to rise and forecasts a price target of $5,400 per ounce within the next 12 months, representing a potential increase of around 17.6% from the current levels.

One of the key factors supporting gold is the pressure on public debt and uncertainties surrounding government financing of growing debt volumes, as well as long-term US government bond yields remaining high.