UBS Forecasts Gold Price Surge to USD 5,000 in First Half of 2027
UBS' Chief Investment Office (CIO) has reaffirmed its bullish outlook on gold, predicting it will reach USD 5,000 per troy ounce in the first half of 2027. This forecast comes as global gold prices have climbed above USD 4,250 per troy ounce in early August 2026. The report cited continued purchases by central banks and Chinese institutions, along with inflows into gold exchange-traded funds, as driving factors behind the rally.
The UBS CIO also highlighted efforts to stabilise the yen by the United States and Japan as a positive catalyst for gold prices. However, the report warned of short-term risks, including accelerating inflation and crude oil prices, which could impact gold prices. Global investors are closely watching Federal Reserve policy, expected to remain more restrictive.
The weakening US dollar is encouraging investors to diversify their portfolios into precious metals. The UBS CIO noted that gold prices around the USD 4,000 level represent an attractive buying opportunity, particularly during periods of short-term volatility. They recommended a single-digit percentage allocation within an overall investment portfolio and suggested considering exposure to other commodities for better diversification.