Aug 7 (Reuters) – UBS said in a note on Friday that it expects gold prices to climb to $5,000 per ounce in the first half of 2027, while cautioning that near-term risks remain.
• Spot gold was trading around $4,295 per ounce but prices have fallen 23% from a record high of $5,594.82 in late January. [GOL/]
• Prices came under pressure as the conflict in the Middle East fuelled inflation concerns and bolstered expectations that the U.S. Federal Reserve would keep interest rates higher for longer, which typically reduces bullion’s appeal to investors.
• The Fed left the benchmark interest rate in the 3.50% to 3.75% range last week.
• UBS expects inflation to moderate gradually, allowing the U.S. central bank to keep interest rates on hold this year before resuming its easing cycle in 2027.
• “Periods of weakness toward $4,000/oz or below may ultimately prove to be opportunities to build strategic exposure,” said UBS Chief Investment Officer Mark Haefele.
(Reporting by Ashitha Shivaprasad and Sukanya Mitra in BengaluruEditing by Clarence Fernandez and David Goodman)
