UBS Sees Gold Reaching $5,000 Per Ounce by Mid-2027
The Swiss multinational investment bank and financial services company UBS has released a report maintaining its positive outlook on gold price prospects. The report, titled 'Gold price upward momentum has support,' forecasts that the precious metal could reach $5,000 per ounce in the first half of 2027.
According to UBS, the current upward trend of gold is fundamental, despite potential short-term market corrections caused by factors such as inflation, US economic data, oil prices, and monetary policy changes. The bank believes that three major drivers will continue to push gold prices up in the medium and long term: reduced real yields, a weakening USD, and strong demand from central banks.
UBS notes that a decrease in real yields would make gold more attractive to investors, as it eliminates the opportunity cost of holding precious metals. A weaker USD also tends to increase gold's value, as its price is denominated in dollars. Additionally, central banks' continued accumulation of gold will serve as a major support for the market.
The bank acknowledges that market corrections are likely, but views them as opportunities to build strategic positions. UBS believes that gold can still fluctuate strongly, but its basic drivers have not weakened, and it sees no end to the metal's upward space.