UBS: Gold rally has solid support, gold prices expected to approach $5,000 next year.

UBS Chief Investment Officer Ulrike Hoffmann-Burchardi and her team stated: “This round of gold rally is underpinned by fundamentals. We expect gold prices to approach $5,000 per ounce in the first half of 2027.” Since the U.S. and Israel launched strikes against Iran in late February, gold prices came under pressure and dipped temporarily. UBS strategists noted that near-term risks persist: if oil prices rise, or if the market prices in a more hawkish Federal Reserve monetary policy and higher bond attractiveness, gold prices will face headwinds. However, the bank remains optimistic about gold’s medium- to long-term outlook. Hoffmann-Burchardi added that her team anticipates inflation will gradually ease, the Fed is expected to hold interest rates steady this year, and will restart its rate-cut cycle in 2027. “Rising expectations of lower policy rates will likely push down real yields, weigh on the U.S. dollar, and in turn boost gold investment demand, creating a more favorable market environment for gold.”