What Role Can Gold Play In Portfolios

Latest edition · July 13, 2026

What role can gold play in portfolios en 1663190

Gold prices have retreated due to higher US real yields and a strong dollar. UBS views this as a temporary consolidation and maintains a positive outlook, advising investors to treat current levels as a buying opportunity.

Gold has faced headwinds recently as solid US economic data pushed rate hike expectations, making non-yielding assets less attractive. However, UBS analysts argue this is a temporary reset rather than a broken investment case. With long-term support from central bank buying and the need for diversification, UBS recommends that underallocated investors utilize the current price pullback to increase gold exposure in anticipation of a target price of USD 5,200/oz by mid-2027.

Key takeaways from the latest edition

• 1.Gold's recent price decline is a result of higher real yields and a firmer US dollar, increasing the opportunity cost of holding the metal.
• 2.UBS remains constructive on gold over the next 12 months, viewing current weakness as a strategic entry point for underallocated investors.

What this series covers

• Higher real yields and a stronger USD have weighed on gold
• But the recent weakness looks more like a reset than a broken investment case.
• So we would treat near-term weakness as a portfolio-building opportunity.
• New this week
• One liner
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• Investment view

Edition archive

• What role can gold play in portfolios en 1663190

  July 13, 2026

• What role can gold play in portfolios en 1662492

  June 29, 2026

• What role can gold play in portfolios en 1661749

  June 22, 2026

• What role can gold play in portfolios en 1661632

  June 15, 2026