According to the latest opinion of the UBS Wealth Management Investment Director's Office, as investors re-evaluate the US monetary policy and the outlook for the US dollar, the price of gold has broken the recent consolidation situation and has risen again, and demand-side factors have also added support to the price of gold. There are three conditions that will help gold continue to rise: the US dollar continues to weaken, market expectations for real interest rates in the US fall, and investment demand for gold increases further. UBS maintained a gold price target of 4,600 US dollars/ounce at the end of this year and launched a new target price of 5,400 US dollars/ounce at the end of September 2027, which is 200 US dollars higher than the target for the end of June 2027. “We think slowing inflation will be the main focus of the market next year. With the help of favorable base effects and other factors, inflationary pressure is expected to ease, thereby benefiting assets such as gold that were previously constrained by expectations of interest rate hikes.” UBS also anticipates that US economic activity will be at or below the trend level. At that time, the US dollar may be under pressure and further support gold demand.

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