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      UBS Projects Gold Price to Reach $5,400 Amid De-Dollarization Trend

      UBS has identified a structural trend of dollar weakness, predicting a gradual depreciation of the currency over the medium to long term. The bank noted a 2.4% decline in the DXY dollar index over the past month, driven by concerns regarding the US fiscal outlook and trade policy uncertainty. While tensions in the Middle East and rising oil prices may provide temporary support for the dollar, UBS emphasizes that the broader trend of diversification away from the currency is likely to persist.

      Gold is expected to be a primary beneficiary of this de-dollarization trend, with UBS forecasting the price to reach $5,400 per ounce within the next 12 months. The bank highlighted a 15% increase in gold prices this month, supported by strong inflows into gold exchange-traded funds and significant purchases by central banks, including a notable addition of 20 metric tons to China's reserves in July, the largest increase since October 2023.

      In addition to gold, UBS advocates for broad commodity exposure, citing strong demand growth in emerging markets and potential disruptions in agricultural supplies due to weather patterns linked to El Niño. The bank also sees opportunities in select currencies, favoring the British pound, Norwegian krone, New Zealand dollar, and Chinese yuan, while maintaining a neutral stance on the euro but suggesting potential for appreciation against the dollar.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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