UBS Forecasts Gold Consolidation Before Year-End Rebound to $5,600

UBS strategists forecast gold prices will consolidate before reaching a $5,600 per ounce year-end target, following an 11% decline in March 2026. The bank attributes the pullback from the January 2026 peak to shifting Federal Reserve rate expectations amid Middle East tensions. Gold traded near $4,700 per ounce on April 2, 2026, recording its steepest monthly drop since June 2013. UBS precious metals strategist Joni Teves noted that cooling expectations for Federal Reserve rate cuts have dampened near-term momentum. Markets now price a steady-rate path through 2026, reducing the metal’s traditional upside catalysts. Teves stated that institutional gold allocations remain underweight, reinforcing demand for portfolio diversification amid macroeconomic uncertainty. UBS identifies current price levels as attractive entry points for long-term investors, though near-term volatility may persist pending clarity on the Iran conflict. The bank expects gold to reclaim record highs later in the year as strategic rebalancing accelerates.