UBS Sees Gold Reaching $5,000 by Early 2027

Gold prices fell sharply on Thursday during US trading due to an unchanged headline PPI and a stronger core PPI, but analysts at UBS expect gold to challenge $5,000 per ounce in the first half of 2027.

The experts view the breakout above the resistance zone at $4,250 as a significant breakthrough driven by institutional buying from China and fresh inflows into gold-backed ETFs.

While the market environment is volatile due to robust US economic data and high oil prices, UBS makes a distinction between temporary trading risk and the long-term bullish scenario.

The major bank expects inflation to ease, leading the Federal Reserve to ease monetary policy from 2027 onwards, which will reduce real interest rates and put pressure on the US dollar.