UBS Sees Gold Prices Soaring to $5,000 in Early 2027

UBS, a financial services company, has predicted that gold prices will reach $5,000 per ounce in the first half of 2027. The current price of spot gold is around $4,295 per ounce, which is 23% lower than its record high of $5,594.82 reached in late January.

The prediction comes as inflation concerns and expectations of higher interest rates from the Federal Reserve have put downward pressure on gold prices. 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.

UBS Chief Investment Officer Mark Haefele noted that periods of weakness toward $4,000/oz or below may ultimately prove to be opportunities to build strategic exposure. This means investors could buy gold at lower prices and benefit from potential price increases later on.