UBS Buy Side "Sudden Statement": Gold Still Has Upside Potential, Short-term Volatility May Intensify
It is predicted that the gold price will rise to USD 4,200 per ounce in the coming months
This week, gold prices once broke through $4,000 per ounce, setting a new historical record.
Amid the cheers and doubts of investors, the outlook for gold's trend has sparked heated debate.
UBS's buy-side institutions provided a key assessment: the "crazy run" of gold is not over yet, predicting that gold prices will rise to $4,200 per ounce in the coming months.
Zhi Shi Tang has organized the latest views published by the UBS Wealth Management Investment Director's Office as follows for readers.
Gold Tops "Strongest Asset"
Gold briefly broke through $4,000 per ounce during trading this week, with this increase primarily benefiting from investors' boosted confidence in the Federal Reserve's interest rate cut cycle, a weaker dollar, and geopolitical uncertainties such as the U.S. government shutdown and the Russia-Ukraine conflict.
Gold has become the strongest performing major asset class this year, with an increase of over 52%, far exceeding the gains during the pandemic and the global financial crisis. This upward trend began in August when Federal Reserve Chairman Jerome Powell signaled a willingness to cut interest rates.
Global Central Banks Support Gold Prices
Data from the World Gold Council (WGC) shows that central banks around the world have also supported gold prices, with total gold purchases by central banks reaching 415 tons in the first half of 2025, and September saw the highest net inflow into gold exchange-traded funds (ETFs) in history.
Future Prices May Reach $4,200 per Ounce
The record rise in gold reflects a significant increase in demand for defensive assets amid economic uncertainty and geopolitical changes.
Given the scale and speed of this year's rise, volatility may increase in the short term, but UBS's buy-side believes that gold still has room for upward movement driven by fundamentals and momentum. We currently predict that gold prices will rise to $4,200 per ounce in the coming months.
From an asset allocation perspective, diversification and hedging remain crucial, and we continue to maintain the view that gold is "attractive."
