Markets

UBS Forecasts Gold Reaching 5,400 Dollars by 2027

By Markets Desk · 2026-09-13 · 1 min read

A stack of shiny, round gold coins resting on a dark surface — Illustration: Tradingbird

UBS projects gold to hit 4,600 dollars in December 2026, defying expectations of two Federal Reserve rate hikes this year.

UBS projects gold will reach 4,600 dollars per ounce by December 2026. The bank forecasts a further rise to 5,400 dollars by September 2027. This represents a 24 percent gain from Friday's closing price. Gold traded at 4,347 dollars on Friday. The metal lost 1.8 percent over the previous week.

Rate Hikes Pressure Gold Valuation

UBS expects the Federal Reserve to raise interest rates twice in 2026. Higher rates increase the cost of holding non-yielding assets. US core inflation accelerated to 0.3 percent in August. This was up from 0.2 percent in July. UBS argues that inflation protection remains a key driver for investors.

Strong Demand Supports Price Targets

Central banks continue to buy gold to diversify reserves. They seek to reduce exposure to US dollar assets. Private investors added 18 billion dollars to gold-backed ETFs in August. Total holdings reached a record 4,189 tonnes. UBS views gold as a strategic hedge rather than a tactical trade.

Market Context And Recent Data

The 5,400 dollar target recovers most of this year's losses. It remains below the annual high of 5,594 dollars. GN auto markets/commodities: gold prices notes that higher real yields pose a risk. However, geopolitical uncertainty may offset this pressure. Persistent fiscal concerns also support the long-term outlook.

Based on reporting by Exchange Rates UK, compiled by the Tradingbird desk.