Critical Warning from UBS Regarding Gold Prices

Switzerland-based UBS Evaluates Gold Markets

Zurich-based UBS Group highlighted that the recent rise in gold prices is not only due to increasing demand but also significantly influenced by economic and political uncertainties in the United States.

Real Interest Rates and Global Risks

UBS noted that the decline in real interest rates in the United States has directed investors to gold as a safe haven. Additionally, the persistent global economic risks and the upcoming midterm elections have contributed to an increase in uncertainty in the financial markets.

Forecasts and Gold Prices

While the bank maintains an optimistic outlook for gold, it also indicated that there is a risk of limited pullback in the later parts of the year. Specifically, for 2026, they raised their forecast for gold per ounce by approximately 24%, increasing it from $5,000 to $6,200. Projections covering March, June, and September warned that following the midterm elections in the United States, gold could temporarily correct to $5,900 per ounce.

Long-term Stance

UBS emphasized that this potential decline would not impact the stability of gold's long-term high price range. Investors are likely to continue turning to safe assets like gold in this environment of uncertainty.