Gold Can Regain Momentum as Tightening Fears Fade

UBS maintains a bullish outlook for gold with a year-end target of $5,500/oz despite recent pressure from high real yields. The bank also favors Asian tech amid a broadening AI hardware cycle and expects the Fed to pivot to rate cuts in late 2026.

Key Takeaways

• 1.UBS remains positive on gold, targeting USD 5,500/oz by year-end, driven by central bank buying and eventual Fed rate cuts.
• 2.The Fed is expected to hold rates steady for now but likely cut in December 2026 as energy-driven inflation fears subside.
• 3.Asia's tech sector is seeing broadening supply bottlenecks beyond memory into CPUs and AI-related components, supporting further gains.

Table of Contents

• Thought of the day
• What to watch: 28 May
• Market update
• Appendix
• Global asset class preferences definitions
• Risk information

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