03.04.2026 15:41
Although gold prices have declined, UBS stated that this decline is temporary and that the price per ounce will reach 5,600 dollars by the end of the year, while silver may show a stronger performance.
As gold prices retreat to their lowest level in the last four months, a striking prediction has come from the Swiss bank UBS. The bank stated that the decline is temporary and forecasted that the price of gold per ounce will reach 5,600 dollars by the end of the year.
After the peak seen in January, gold experienced a sharp decline and has tested low levels in recent weeks. In global markets, especially the war in the Middle East and uncertainties in the Strait of Hormuz have affected pricing, while investors continue to seek direction.
“NEW RECORDS ARE INEVITABLE”
UBS strategist Joni Teves noted that despite short-term volatility, gold has been moving towards new peaks throughout the year. Teves expressed that the geopolitical risks in the region are a significant factor that will push prices up in the medium term. The bank reported that the recent decline was particularly due to ETF outflows in the US and Europe, while strong domestic demand in China has continued to support inflows into gold funds.
SEEN AS A BUYING OPPORTUNITY DURING RETREAT
UBS assessed a potential pullback of gold towards the 4,000 dollar level as a buying opportunity for investors. The bank stated that speculative positions have largely been cleared and a bottom has formed in the market. UBS anticipates that investors will continue to turn to gold for portfolio diversification, emphasizing that issues related to energy supply, the risk of stagflation, concerns about US debt, and questions regarding the Fed's independence will support gold.
EXPECTATION OF RISE IN SILVER AS WELL
While UBS expects a similar upward trend in silver, it noted that prices could perform better compared to gold. However, it warned that due to its dependence on industrial demand, volatility in silver could be higher. The bank also predicted that the gold/silver ratio could move within the 50-60 range throughout the year, while supply shortages in the physical silver market may continue.
* THIS IS NOT AN INVESTMENT ADVICE