Gold is expected to extend its gains into 2026, according to UBS, which has raised its mid-year price target to $4,500.00 per ounce from $4,200.
The Swiss investment bank said price momentum has held, with the metal trading above $4,000 after a strong 2025.
UBS said the outlook is supported by expectations of further US rate cuts, lower real yields and ongoing geopolitical uncertainty.
The bank also pointed to rising fiscal concerns in the United States as a factor that could sustain investor and central bank demand. ETF inflows are forecast at 750 metric tons in 2026.
Central bank and sovereign wealth fund buying is projected at 900 metric tons next year. UBS keeps gold rated Attractive in its asset allocation and has lifted its upside case to $4,900 while maintaining its downside case at $3,700.