UBS(US:UBS) Jin Shi Shu Ju·2025-12-30 05:19Group 1 - UBS has raised its gold price target for the first three quarters of 2026 to $5,000 per ounce, with a potential increase to $5,400 if political or economic turmoil related to the U.S. midterm elections escalates [1] - The bank expects gold prices to decline to $4,800 per ounce by the end of 2026, up from a previous forecast of $4,300 [1] - UBS attributes the steady growth in gold demand in 2026 to low real yields, global economic concerns, and uncertainties surrounding U.S. domestic policies [1] Group 2 - UBS has frequently adjusted its gold price expectations within a short period, indicating that recent price corrections are temporary and driven by geopolitical or market risks [2] - The bank highlighted strong and accelerating buying trends from central banks and individual investors, with a reported net purchase of 634 tons of gold by central banks in the first three quarters of 2025 [2] - Global gold ETFs have seen significant increases in holdings, with an addition of 222 tons in the third quarter, supporting UBS's outlook on demand [2] Group 3 - Demand for gold bars and coins has exceeded 300 tons for the fourth consecutive quarter, indicating enhanced investor interest [3] - Despite a 19% year-over-year decline in global gold jewelry demand, markets like China and India are showing seasonal recovery signs [3] - UBS recommends investors to allocate a moderate single-digit percentage of their portfolios to gold, viewing it as an effective hedge and diversification tool [3] Group 4 - UBS reiterated that factors such as interest rate cuts, declining bond yields, fiscal challenges, and political instability in the U.S. will continue to drive gold demand in the coming months [4] - The bank's chief investment office noted that gold prices have recovered some losses from late October, with demand growth expected to support further price increases [4]