UBS: Gold Set to Surge on De-Dollarization Trade

UBS analysts say gold is benefiting from a reinvigorated de-dollarization trade and expect it to continue climbing amid pressure on the US dollar.

The Swiss banking giant's Chief Investment Office notes that investors are increasingly focused on the long-term shift away from the US dollar, driven by concerns about the US fiscal outlook and uncertainty around trade policy.

Gold prices have risen 15% this month, and UBS expects them to reach $5,400/oz over the next 12 months, citing continued demand for the precious metal and a decline in real interest rates that will help reignite investment demand.