Gold Rate Prediction: Gold has fallen by approximately 28% since reaching a record high in January 2026. However, despite this, UBS is confident that the price of gold will see a bumper recovery.
Gold prices are expected to see a bumper recovery after the crash.
Gold Price Outlook: Global brokerage firm UBS believes that although gold prices are currently experiencing a sharp decline, they could see a significant rebound in the coming months. In its new report, UBS states that the price of gold in the international market could rise by approximately 36% from its current level to reach $5,500 per ounce by the end of 2026 , or within the next six months.
The brokerage has set a target of $5,500 per ounce for gold on a long-term basis. UBS even states that if global uncertainty or the debt crisis escalates, gold has the potential to reach $7,200 per ounce. It's worth noting that the current price of gold is at $3,970 per ounce.
Why is the brokerage so confident?
Gold has fallen by nearly 28% from its all-time high ($5589) reached in January this year. Despite this, UBS remains confident in a recovery. UBS is so confident of a price rebound because central banks around the world, particularly China and Uzbekistan, are continuously purchasing gold to reduce their dependence on the US dollar. If this trend of purchasing 750-1000 metric tons of gold continues, prices will find support at lower levels.
UBS also believes that although the US Federal Reserve is currently maintaining a firm stance on interest rates, as soon as economic growth slows, the Fed will be forced to cut interest rates. This will likely boost gold prices again. UBS believes that while the recent price decline has led to outflows from gold ETFs, institutional investors may begin buying on a large scale once prices return. This will increase demand and lead to a rise in prices.
How much will the price increase per 10 grams?
Based on UBS's 36% increase, the price of 10 grams of gold (1 tola) will increase by approximately ₹51,500-₹52,000 over the next six months. The current average price of gold per 10 grams is ₹144,000. This means that the price could reach ₹195,840 per 10 grams in the next six months. This means that gold could reach ₹2,000 per 10 grams in the next six months.
