17.08.2026 18:00
Swiss-based banking giant UBS stated that the sharp pullback in gold is not a structural deterioration, describing levels at or below $4,000 as a long-term buying opportunity. Citing falling real interest rates and strong central bank demand, the bank announced a new target of nearly $5,000 for the first half of 2027.
Switzerland-based global investment bank UBS has published a noteworthy analysis following the sharp corrections in gold prices per ounce. The bank described levels at and below $4,000 not as a signal of decline but as an "opportunity to open new positions," while also announcing its target for 2027.
As volatility in gold prices continues across global markets, major bank UBS shared its new report that has caught investors' attention. Stating that the pullbacks in gold per ounce do not indicate a structural deterioration in the market, the bank emphasized that it maintains its positive medium- and long-term outlook.
SHARPEST CORRECTION FROM THE $5,500 RECORD
Gold had tested its all-time high level by rising above $5,500 at the beginning of the year, driven by geopolitical tensions and intense investor demand. Following the historic peak, amid the selling pressure and correction process, gold per ounce retreated to the $4,000 limit in June and July. Losing value in the range of 25-30 percent compared to its peak, recording one of the sharpest quarterly declines in the last 10 years, gold per ounce has been striving to stabilize in the $4,350 - $4,440 range as of August.
THREE MAIN REASONS FOR THE EXPECTATION OF AN UPSWING
UBS stated that gold prices will regain momentum, basing its projections on three key pillars:
- Decline in Real Interest Rates: The expected pullback in real interest rates on a global scale is projected to directly support gold demand.
- Weakening US Dollar: The expected loss of strength in the dollar index is anticipated to trigger commodity prices upward.
- Central Bank Purchases: The continued appetite of the official sector and central banks for gold stockpiling provides a floor for the market.
2027 SCENARIO: TARGET $5,000
According to the projection shared by the bank, gold per ounce is targeted to reach levels close to $5,000 in the first half of 2027. In UBS's analysis, it was stated that potential dips towards and below the $4,000 level would create a strategic accumulation area for long-term investors and that these levels would form a permanent floor.
* THIS IS NOT AN INVESTMENT ADVICE