UBS expects gold to keep rising after hitting fresh record highs. The broker said bullion has already climbed around 7% this year after a near 65% gain in 2025. Even so, it sees gold reaching USD 5,000/oz in the coming months.
Analysts at UBS linked the call to higher hedging demand. It pointed to ongoing macroeconomic concerns, policy uncertainty and geopolitical risks. The note flagged renewed tension in the Middle East and said investors remain focused on energy flows through the Strait of Hormuz.
The Swiss bank still prefers gold as a hedge asset at this stage. It cited gold’s diversification potential and noted that the oil market has been hesitant to price a risk premium recently and looks somewhat oversupplied in the first half of the year.
UBS also said institutional and policy uncertainty in the US is supporting demand. It expects inflation to stay an economic worry even as recent data eased some concerns. The bank argues this backdrop should drive real yields lower as the Federal Reserve eases further, which typically supports non-interest-bearing gold.