Gold Prices Forecast to Hit New High, $3,900 Target Set for Mid-2026.

Gold prices are set to reach a new high, with UBS analysts predicting a rally into next year and raising their target price to $3,900 an ounce from $3,700 an ounce in mid-2026. This forecast is based on a combination of factors, including the ongoing economic uncertainty, geopolitical tensions, and the potential for further monetary policy easing.

Gold prices are poised for a significant rally, with UBS analysts predicting a new high of $3,900 per ounce by mid-2026. The Swiss bank has revised its gold price outlook upwards, citing a combination of economic uncertainty, geopolitical tensions, and potential monetary policy easing.

UBS, in a recent report, lifted its gold price target to $3,800 per ounce by the end of 2025 and further raised it to $3,900 by mid-2026. This upward revision is primarily attributed to expectations of Federal Reserve rate cuts, a weakening U.S. dollar, and ongoing geopolitical tensions Gold prices expected to reach $3,900/oz by mid-2026: UBS^[1].

The bank also projected that gold-backed exchange-traded fund (ETF) holdings would surpass 3,900 metric tons by late 2025, nearing the record high of 3,915 tons set in October 2020. UBS maintains an attractive view on gold and recommends a mid-single-digit percentage allocation to the metal in global asset portfolios Gold prices expected to reach $3,900/oz by mid-2026: UBS^[1].

Gold's recent performance has been impressive, with prices already setting more than 30 records in 2025. The precious metal has rallied significantly, with prices currently trading around $3,650 an ounce, within reach of an intraday high of $3,665. This surge is partly driven by expectations that the Fed will embark on a second wave of easing, following a year of rate stability Gold prices expected to reach $3,900/oz by mid-2026: UBS^[1].

UBS anticipates that the U.S. real interest rate will drop further into negative territory by year-end, supporting demand for gold. The bank also expects the U.S. dollar to weaken, which should boost investment demand for gold and support prices. The projected full-year ETF demand is now estimated to be just under 700 metric tons, bringing the total global gold demand for the year to around 4,850 metric tons, the highest since 2011 Gold prices expected to reach $3,900/oz by mid-2026: UBS^[1].

Geopolitical concerns and policy differences between the U.S. administration and the Federal Reserve are also significant drivers of gold's appeal. Central bank purchases of gold are expected to remain robust, with projections around 900 to 950 tons for this year Gold prices expected to reach $3,900/oz by mid-2026: UBS^[1].

Other financial institutions have also raised their gold price forecasts. Commerzbank, for instance, has revised its forecast to $3,800 per troy ounce by the end of 2026, up from its earlier projection of $3,600. The bank now expects the Fed to cut interest rates by a total of 200 basis points by the end of next year, 50 basis points more than previously assumed UBS raises gold price target to $3 800/oz by end-2025^[2].

Gold's status as a safe-haven asset during periods of economic and geopolitical uncertainty, combined with its strong performance in low-interest-rate environments, makes it an attractive investment option for many investors. As economic uncertainty persists, gold is expected to continue to enhance the diversification and resilience of investment portfolios Gold prices expected to reach $3,900/oz by mid-2026: UBS^[1].