UBS Sees Gold Prices Plummeting Before June 2027 Forecast
UBS has forecast gold prices to reach $5,200 by June 2027, but warns that it may first experience a pullback towards $3,850 due to weaker investment demand and higher US interest rates. The bank's prediction is based on its analysis of the current market trends, including softer second-quarter demand data from the World Gold Council.
The gold price in US dollars has already dropped 1.68% to around $4,040 an ounce this week, trading close to the bottom of its daily range. This decline follows a substantial retreat from its January high above $5,500 and marks almost a 5% drop since the start of 2026.
UBS remains bullish about gold's long-term prospects, expecting prices to rise to $4,400 in September, $4,600 by December, $5,000 in March 2027, and finally reaching its target of $5,200 by June 2027. However, the bank also cautions that there are risks to the downside in the near term, citing softer demand for investment and jewelry, as well as higher mine supply.