UBS Predicts Gold Price Rally to $5,500 by Year-End Despite Recent Decline
UBS forecasts gold prices to rise to $5,500 per ounce by year-end despite a recent 20% decline from January's record high. The brokerage attributes the correction to higher energy prices, a stronger US dollar, and expectations of prolonged elevated US interest rates. UBS highlights ongoing strong demand, central bank purchases, elevated global debt, and fiscal deficits as factors supporting gold's medium-term outlook, anticipating a weaker dollar could further boost prices.