UBS Predicts Gold Prices Will Approach $5,000 Next Year

UBS Chief Investment Officer Ulrich Hofmann-Burkhardt and his team stated that the current rise in gold prices is supported by fundamentals, predicting that gold prices will approach $5,000 per ounce in the first half of 2027. Following the outbreak of war between the U.S. and Israel against Iran at the end of February, gold prices experienced a temporary decline. UBS strategists pointed out that there are still risks in the short term; if oil prices rise or market expectations for a more hawkish Federal Reserve monetary policy increase, gold prices may face pressure. However, they remain optimistic about the medium to long-term trend of gold. Hofmann-Burkhardt mentioned that the team anticipates inflation will gradually ease, and the Federal Reserve is expected to maintain interest rates this year, with a potential restart of the rate-cutting cycle in 2027. The rising expectations for lower policy rates could reduce real yields and weigh on the dollar, thereby boosting demand for gold investments and creating a more favorable market environment.

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