UBS & Goldman Sachs Boost Gold Targets—What It Means

UBS and Goldman Sachs Raise Gold Price Forecasts, Citing Investor Sentiment and Central Bank Demand

Strategists at UBS and Goldman Sachs have revised their gold price targets upward, pointing to strong investor sentiment and rising central bank demand as key drivers of the metal’s ongoing rally.

UBS strategist Joni Teves acknowledged the difficulty of chasing a strong market but argued that it would be premature to call an end to gold’s bull run simply because prices have repeatedly hit record highs. She raised her year-end forecast to $2,900 from $2,800 and increased her 2026 target to $2,900 from $2,850.

Similarly, Goldman Sachs analysts, led by Lina Thomas, boosted their year-end target to $3,100 from $2,890.

Gold futures (GC00 +0.82%) climbed 1% on Tuesday, reaching $2,923.80 per ounce, continuing a year in which the metal has outperformed U.S. stocks, bonds, the Swiss franc, and the Japanese yen.

What’s Driving the Rally?

Teves sees gold potentially reaching $3,200 later this year, attributing the rise to strong investor sentiment in the face of macroeconomic uncertainty. She also noted that low positioning in the market leaves ample room for further accumulation. Additionally, official purchases and tightening liquidity—especially in London—could amplify price movements.

Over the long term, UBS expects gold to stabilize around $2,500, reflecting elevated production costs and capital expenditures. Teves also pointed to broader concerns such as fiat currency debasement, the worsening U.S. fiscal deficit, and geopolitical risks, all of which could keep gold attractive as a hedge.

While UBS left its silver forecast unchanged at $35.40 per ounce by year-end, Teves suggested that silver could outperform gold if weaker economic growth prompts a more dovish Federal Reserve.

Goldman Sachs echoed UBS’s bullish outlook but emphasized rising central bank demand as a key factor. The bank estimates this structural demand could push gold prices up by 9% by year-end. If policy uncertainty remains high, Goldman sees the potential for gold to surge as high as $3,300.