Gold Price Target Set at $5,000 as UBS Predicts Bull Run Ahead

UBS Group has predicted that gold prices could reach $5,000 per ounce in the first half of 2027. The bank attributes this prediction to declining real interest rates and central bank gold purchases.

The strategists at UBS believe that a weaker US dollar will also contribute to higher gold prices. They note that historically, a weaker dollar has been a strong tailwind for gold, and the renewed focus on 'de-dollarization' allocations will benefit this precious metal.

Additionally, central bank gold demand is expected to remain at elevated levels, driven by their long-term willingness to reduce exposure to US dollar assets. This suggests that even during periods of weak private investment demand, central banks will continue to support the gold market.