UBS said the current rally in gold is backed by underlying fundamentals and projected that prices could approach $5,000 per ounce in the first half of 2027. The view was attributed to Chief Investment Officer Ulrike Hoffmann-Burchardi and her team, according to a BlockBeats report published on Aug. 7. UBS noted that gold came under pressure and pulled back after the United States and Israel launched a war against Iran at the end of February. In the near term, the bank said risks remain. Gold could face pressure if oil prices rise, if markets price in a more hawkish Federal Reserve stance, or if bonds become more attractive. Even so, UBS kept a constructive medium- to long-term view on bullion. Hoffmann-Burchardi said the team expects inflation to ease gradually, the Fed to keep rates unchanged this year, and to restart a rate-cutting cycle in 2027. In UBS’s view, growing expectations for lower policy rates would likely push down real yields and weigh on the U.S. dollar, which in turn would support investment demand for gold and create a more favorable backdrop for the metal.
UBS said the current upswing in gold has fundamental backing and projected that the metal could move toward $5,000 per ounce in the first half of 2027.
According to BlockBeats on Aug. 7, the view came from UBS Chief Investment Officer Ulrike Hoffmann-Burchardi and her team. The bank said gold prices came under pressure and briefly pulled back after the United States and Israel launched a war against Iran at the end of February.
UBS strategists said near-term risks are still in place. Gold may face pressure if oil prices move higher, if markets begin to price in a more hawkish Federal Reserve policy path, or if bonds become more attractive to investors.
UBS keeps a constructive longer-term view
Despite those short-term risks, UBS remains optimistic on gold over the medium to long term. Hoffmann-Burchardi said the team expects inflation to gradually cool, the Fed to leave interest rates unchanged this year, and to restart its rate-cutting cycle in 2027.
She said rising expectations for lower policy rates would likely compress real yields and weigh on the U.S. dollar. That, in UBS’s view, would lift investment demand for gold and create a more supportive market setting for the metal.
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