Gold Price Forecast Soars to $5,400 as De-Dollarization Takes Hold

UBS Group's commodity and FX analysts predict that gold prices will reach $5,400 per ounce by next summer due to the renewed momentum for de-dollarization. The U.S. dollar index has fallen 2.4% in one month, driving investors' attention to long-term de-dollarization.

According to a report from UBS Group's Chief Investment Office, the trend toward diversification away from the dollar is expected to remain intact. Supporting factors include ongoing concerns about the U.S. fiscal trajectory, uncertainty surrounding trade policies, and mounting evidence that many countries are diversifying their reserve holdings away from the dollar.

Gold has risen 15% this month, driven by both central banks and ETFs. The Chief Investment Office emphasized gold's potential in the current environment, stating that the current rally still has room to run and that gold prices will continue climbing as the U.S. dollar faces further pressure.