UBS Sees $5,000 Gold Target by Mid-2027 Amid Inflation Concerns

UBS has predicted that gold prices will reach $5,000 per ounce in the first half of 2027. This forecast comes despite current market pressures, with spot gold trading at around $4,295 per ounce after a 23% decline from its record high of $5,594.82 in late January.

The conflict in the Middle East has fueled inflation concerns and bolstered expectations that the U.S. Federal Reserve will keep interest rates higher for longer. This typically reduces bullion's appeal to investors.

However, UBS expects inflation to moderate gradually, allowing the Fed to keep interest rates on hold this year before resuming its easing cycle in 2027.