UBS predicts gold prices could reach $4,200 by 2026

In its latest report, UBS predicts that gold prices could reach $4,200 per ounce by mid-2026. The report cites a weakening US dollar, continued increases in central bank gold holdings, and increased investment in ETFs as key drivers of the price increase. UBS recommends maintaining a gold allocation of around 5% of a portfolio, emphasizing that gold, due to its low correlation with stocks and bonds, can serve as an effective hedge against inflation and geopolitical risks. At the same time, UBS cautions investors to be mindful of gold price volatility and the risks associated with potential shifts in US monetary policy.