Gold’s Bright Future
Gold prices could touch $4,700 per ounce by the first quarter of 2026, says Sagar Khandelwal, strategist at UBS Global Wealth Management. He explained that political tensions, trade issues, and lower real interest rates are helping gold gain strength. In 2025, gold has already risen more than 60%, beating other major assets. Khandelwal said that even if volatility increases, gold remains a strong choice for investors looking for safety and balance in their portfolios.
UBS believes that as the U.S. Federal Reserve cuts interest rates to support the economy, real interest rates might turn negative, reducing the dollar’s appeal. This could lead more investors to buy gold. According to the World Gold Council, global gold ETFs saw a record inflow of USD 17 billion in September, with a total of USD 26 billion in the past three months — the strongest quarter on record.
Strong Demand Ahead
UBS expects global gold demand in 2025 to reach around 4,850 metric tons, the highest since 2011. This growth comes from both central banks and private investors, many of whom are shifting away from U.S. Treasuries to gold. Khandelwal believes that this shift could push prices even higher.
He also said that because of economic, political, and policy uncertainties, gold will likely remain a preferred asset for investors worldwide. UBS suggests keeping a mid-single-digit percentage of gold in a diversified investment portfolio for stability.
Khandelwal added that gold mining companies could perform even better than gold itself in the coming months. As gold prices climb, miners’ cash flow and profits are expected to grow faster.
Gold started the week strong, recovering from last Friday’s drop, showing that investor confidence in the yellow metal remains solid.
