01.04.2026 18:28
Recently declining gold prices have caused concern among investors, while analysts at UBS, one of Switzerland's largest banks, predict that the decline is temporary and that gold could make a strong rebound in June.
The recent decline in gold prices has raised the question among investors, "Will the rise continue?" Notable evaluations from UBS analysts regarding market fluctuations have emerged.
“THE DECLINE MAY BE TEMPORARY”
UBS stated that the recent weakness in gold prices may not be permanent. The bank pointed out that gold, which provided returns of up to 25% at the beginning of the year, has given back a significant portion of its gains for 2026.
INTEREST RATE EXPECTATIONS PRESSURE GOLD
According to the analysis, rising energy prices have led markets to anticipate a tighter monetary policy. This situation has increased the cost of holding gold, which does not yield interest. Previously, markets had highlighted expectations of two and a half FED rate cuts for 2026, but this expectation has shifted to the possibility of no rate cuts, or even a limited increase. Similarly, expectations for interest rate hikes have gained strength for the European Central Bank and the Bank of England.
WILD PREDICTION FOR YEAR-END
UBS predicts that demand for gold will rise again with the end of the liquidity-seeking process. The bank states that the decline in gold prices will be short-lived and that a recovery will begin. According to forecasts, the price of gold per ounce is expected to rise to $6,200 by the end of June and then decline to $5,900 at the beginning of 2027. Gold is currently trading at around $4,500.
* THIS IS NOT AN INVESTMENT ADVICE