UBS Raises Gold Price Target for 2026, Could Break Through 6,200 US Dollars

JAKARTA, KOMPAS.com - The global gold price is projected to remain one of the main focuses of the financial markets in 2026. Global investment bank UBS, in its latest research, has raised the target price for the precious metal, in line with increasing investment demand, central bank purchases, and lingering macroeconomic and geopolitical uncertainties. UBS assesses that gold price dynamics are not only determined by fundamental factors but are also influenced by investor psychology, which drives changes in portfolio allocation and perceptions of global risks. However, the bank also forecasts that gold prices will experience a moderate adjustment towards the end of the year. UBS predicts that the price could fall to the range of 5,900 US dollars per ounce by the end of 2026, among other things influenced by political and economic dynamics following the US midterm elections. In a more extreme scenario, UBS even sees the potential for the global gold price to reach 7,200 US dollars per ounce. This projection reflects UBS’s optimism towards the medium-term gold trend, while still allowing for significant volatility throughout the year. UBS assesses that the surge in the gold price target is mainly driven by investment demand that is stronger than previous estimates. Gold purchases by central banks have become an important structural factor supporting the market. Consistent gold accumulation programmes by central banks are seen to help stabilise the market when volatility increases. Unlike retail or financial institution investors who can adjust positions in the short term, central banks tend to maintain stable purchasing schedules and are not very sensitive to price fluctuations. This condition creates structural support for gold prices, while also strengthening the perception of gold as a hedge asset in global portfolios.