UBS Reaffirms Positive Recommendation for Gold, Targeting $6,200 per Ounce

UBS has reaffirmed its positive recommendation for gold and set a price target of $6,200 per ounce in the coming months, citing elevated geopolitical risks in the Middle East, expectations of US Federal Reserve easing, a weaker dollar, and declining real yields.

The bank based its outlook on World Gold Council data showing that total demand for gold exceeded 5,000 tonnes in 2025 for the first time in history, reflecting a shift in the metal's weight within global portfolios.

Wood Mackenzie estimated that around 80 mines will exhaust their current production plans by 2028, adding pressure to the supply side. UBS suggests allocating up to mid-single digits to gold within a diversified investment portfolio.

This trend is of particular importance to investors in the region, as its drivers are partly linked to Middle East risks close to them, and gold offers a hedge against currency fluctuations and global interest rate trends. The price target remains an estimate by the bank rather than a guarantee, as it is tied to the path of US monetary policy, and UBS recommends holding it as part of a balanced portfolio rather than relying on it alone.

What do these terms mean?

Investment recommendation: A rating issued by investment banks such as "Buy", "Hold", or "Attractive", representing their view on the asset's performance. Real yield: Nominal yield minus inflation. Diversification: Spreading funds across different assets to reduce risk. Ounce: A unit of measurement for gold globally, equal to approximately 31.1 grams.