Swiss bank UBS Group (UBS) has reiterated its bullish outlook for gold despite the precious metal’s steep decline during March of this year.
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Gold’s price has come under pressure in recent weeks as markets factor in the inflationary impact of higher crude oil prices and the prospect of interest rate hikes. In March, gold’s price fell 14%. Rising bond yields and a strengthening U.S. dollar also weighed on gold’s price.
However, UBS remains upbeat on gold and says in a new note to clients that the March pullback was a buying opportunity. “The risk that gold extends its bull run for a couple more years is rising. Weaker growth that triggers fiscal and/or monetary stimulus presents upside risks for gold.”
UBS’ Gold Price Target
Commodities analysts at UBS add in their note that, “Our gold outlook is unchanged and we maintain our view that gold should see new highs this year. We think any pullbacks present opportunities for investors to build positions.”
UBS continues to forecast that gold’s price will average $5,000 per ounce in 2026, down a tick from a previous estimate of $5,200. The Swiss bank’s 2027 and 2028 forecasts for gold remain unchanged at $4,800 and $4,250 per ounce, respectively.
Is UBS Stock a Buy?
UBS Group stock has a consensus Moderate Buy rating among 11 analysts. That rating is based on seven Buy, two Hold, and two Sell recommendations issued in the last 12 months. The average UBS price target of $50.07 implies 27% upside from current levels.
