Gold Price Stuck at $4,380 as UniCredit Sees $5,000 Target Elusive

The gold price has recovered some ground in recent weeks, reaching $4,380 an ounce. However, according to UniCredit, this is not enough to overcome the bearish pressure from higher interest rates.

UniCredit's revised forecast for end-2026 puts the gold price between $4,300 and $5,000. This range represents a modest upward bias, but also reflects the bank's neutral to slightly constructive outlook.

The Federal Reserve's recent quarter-point increase to 3.75%-4.00% has sharpened competition from interest-bearing assets, making it harder for gold to gain traction. The Dollar has strengthened against the Euro as a result, which is further pressuring the gold price.

Despite this, UniCredit notes that not all rising yields are created equal. A steeper yield curve driven by fiscal deficits and debt-sustainability concerns can be supportive of gold prices.