UBS Sticks to $5,200 Gold Target Amid Near-Term Volatility

Gold prices may face short-term pressure from rising bond yields and easing geopolitical risk, according to UBS. The bank believes any pullback should be seen as a buying opportunity.

Despite this near-term risk, UBS continues to target $5,200 per ounce by mid-2027, citing structural demand from central banks and investors. The bank notes that central banks' strong demand for gold remains intact, while investors are likely to increase their allocations once interest-rate uncertainty begins to fade.

UBS also points out that geopolitical tensions continue to provide an important backstop for prices. The bank suggests that periods of weakness should be viewed as opportunities to add exposure to gold.