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UBS

June 6, 2026

Gold Between Inflation Fears And Diversification Of Reserves

Weekly UpdateCommoditiesRates Govt Bonds

UBS expects the gold price to reach USD 5,500 by year-end 2026, supported by expected Fed easing and persistent central bank buying. Gold is increasingly viewed as a strategic hedge against global debt and geopolitical fragmentation.

Key Takeaways

  • 1.The gold price is expected to reach USD 5,500 per ounce by the end of 2026 as Fed rate cuts resume.
  • 2.Central bank demand remains a structural anchor for gold, providing a floor during cyclical weakness.
  • 3.Gold serves as a strategic portfolio tool for diversification against debt, inflation, and regime-change risks.

Table of Contents

  • Gold: Between inflation fears and diversification of reserves
  • Global asset class preferences definitions
  • Appendix

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Authors

Michael Bolliger

Securities

XAU

Themes

Central Bank Reserve DiversificationMonetary Policy & Real YieldsDebt Sustainability

Regions

Middle EastGlobalSwitzerland