UBS Forecasts Gold Prices Could Hit $5,000 by 2027

Swiss bank UBS forecasts that gold prices could reach $5,000 per ounce by the first half of 2027. This projection follows a recent price breakout above the $4,000 to $4,100 trading range.

The bank attributes the upward momentum to structural demand, specifically continued purchases by central banks diversifying their foreign exchange reserves and renewed inflows into gold-backed exchange-traded funds. Investors are increasingly treating the precious metal as a safe-haven asset amid persistent geopolitical uncertainty and expectations of lower interest rates.

UBS notes that long-term fundamentals support a broader uptrend, though it warns of potential temporary volatility. Strong U.S. economic data, persistent inflation, or a hawkish stance from the Federal Reserve System could boost the U.S. dollar and Treasury yields, creating short-term price fluctuations.