27.06.2026 11:19
While the U.S. central bank's policies are pressuring markets, Swiss banking giant UBS published a report that upends all forecasts, predicting that gold will surge to $5,200 per ounce within the next 12 months and describing the current declines as a "buying opportunity not to be missed."
Concerns that the US Federal Reserve (Fed) may continue its tight monetary policies longer than expected continue to pressure gold, while UBS (Union Bank of Switzerland), one of the global finance giants, published a groundbreaking analysis.
Stating that short-term price fluctuations are temporary, the bank predicted a radical rally of a kind that would excite gold investors.
SHORT-TERM SQUEEZE, LONG-TERM MEGA RALLY
In the report shared by UBS, it was stated that the recent declines in gold represent a retreat of approximately 26% from the historic peak the yellow metal tested in January 2026.
The analysis noted that short-term technical indicators, the rise in real yields, and the periodic strengthening of the US dollar increase the opportunity cost of holding gold, and predicted that prices could become stuck in the range of $3,850 to $4,000 in the near term.
The report described this periodic trend as follows: "This latest decline has pulled the yellow metal's price down 26% from its all-time high set in January. Momentum and technical indicators, the recent rise in real yields, and the strengthening of the US dollar have raised the opportunity cost of holding gold."
"TARGET $5,200, CURRENT LEVELS ARE BUYING OPPORTUNITY"
Despite short-term pressures, the Swiss banking giant declared that gold fully maintains its long-term safe-haven credentials. Strong emphasis was placed on the portfolio diversification advantage gold offers during periods of escalating geopolitical tensions, increased stock market stress, inflationary surprises, and eroding global confidence in fiat currencies (paper money).
UBS analysts stated that they expect gold to initiate a strong rally towards $5,200 per ounce in the coming 12 months and gave the following advice to investors: "We like the diversification advantages the yellow metal offers during periods of stock market stress, geopolitical uncertainty, inflation surprises, and declining confidence in fiat currencies. We expect gold to move towards $5,200 per ounce within the next 12 months and see the current level as an opportunity for under-invested investors to increase their positions."