Gold Price Trend | UBS Expects Ultimate Recovery with Target Price of $5,900 in Early Next Year

UBS Wealth Management Investment Office states that gold currently faces multiple resistances, including energy-driven inflation and rate hike expectations, a strong dollar, and capital outflows. However, they believe these are short-term factors, and they expect the gold target price to be around $5,900 per ounce in early next year.

UBS points out that historical trends show that when monetary policy shifts toward tightening and real yields rise, gold prices tend to decline initially and then further retrace. Whether the current selling pressure will persist largely depends on whether the Federal Reserve’s policy stance changes. Due to years of strong returns and capital demand, profit-taking by investors has also intensified gold selling pressure. Additionally, the Middle East is a key hub for global gold trade and consumption. Conflicts in the region have caused supply and demand disruptions, putting further pressure on gold prices.

The bank states that the current situation could trigger a slowdown in global economic growth, which may reduce some of the factors that are unfavorable to gold prices. If this decline is viewed as gold losing value, it is better seen as a correction within its long-term upward trajectory. For investment portfolios, gold continues to play an important role in hedging and diversification. Although gold prices may still fall, UBS’s expectation of a eventual rebound makes these levels attractive for long-term investors, with a target price of about $5,900 in early next year.