By Admin 
- UBS: Gold price could reach $5500/ounce by 2026.
- Central banks are continuously buying gold to reduce dependence on the dollar.
- Fed rate cuts and institutional investment will also boost prices.
- Gold has the potential to reach $7200/ounce as global uncertainty increases.
Gold Price Outlook: Global brokerage firm UBS believes that even though there is a sharp decline in gold prices right now, there may be a bumper rise in it in the coming time. In its new report, UBS has said that the price of gold in the international market may jump by about 36% from its current level to reach the level of $ 5500 per ounce by the end of the year 2026, i.e. in the next six months.
The brokerage has set a target of $ 5500 per ounce for gold on a long-term basis. UBS has gone so far as to say that if global uncertainty or debt crisis continues further, gold has the potential to reach $7200 an ounce. Let us tell you that currently the price of gold is at the level of $ 3970 per ounce.
Why is brokerage so confident?
Gold has fallen by about 28% so far from its all-time high ($5589) in the month of January this year. However, despite this, UBS has full confidence in the recovery of gold. UBS is so confident of a price rise because central banks around the world – especially China and Uzbekistan – are continuously buying gold to reduce their dependence on the US dollar. If this trend of purchasing 750-1000 metric tonnes of gold continues, then prices will get support at lower levels.
UBS also believes that even though the US Federal Reserve is currently adopting a tough stance on interest rates, as soon as the pace of economic growth slows down, the Federal Reserve will have to cut interest rates. Due to this, gold prices will pick up again. UBS believes that due to the recent fall in prices, there has definitely been an outflow from Gold ETFs, but once the prices fall to lower levels, it is possible that institutional investors may start buying on a large scale. This will increase demand and prices will rise.
How much will the price increase per 10 grams?
According to UBS’s 36% increase in price, the price of 10 grams of gold (1 tola) will increase to around Rs 51500-52000 in the next six months. Currently the average price of gold per 10 grams is Rs 1,44,000. That means in the next six months the price can reach Rs 1,95,840 per 10 grams. That means gold can reach Rs 2,000,00 per 10 grams in the next six months.
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