UBS Sees Gold Rebound to $5,200 by Mid-2027
Gold prices have been under pressure in recent months due to stronger US data and rising real yields, which has increased the opportunity cost of holding gold. According to UBS, the correction is more like a reset than a broken investment case.
The bank expects gold to end 2026 around $4,600 an ounce before rising to $5,200 by June 2027. However, it also sees pullbacks towards the $3,850-$4,000 range as opportunities for under-allocated investors to add exposure.
UBS continues to view gold as a strategic portfolio hedge, arguing that the metal can offer diversification during equity-market stress, geopolitical shocks, inflation surprises and periods of weakening confidence in fiat currencies. The bank expects the Federal Reserve to remain on hold through 2026 before cutting rates in 2027.
Gold has been oscillating around $4,000 for much of July, well below its record levels reached earlier this year. Despite the correction, investor demand for gold exchange-traded funds remains relatively strong, with positioning suggesting investors have not abandoned the market.