The general US economic sentiment is showing signs of meltdown, as the US dollar continues to show a weaker price stance. The current market downturn has also weakened the crypto and stock market sectors, with both domains projecting a volatile stance. In the middle of this, gold has turned out to be the biggest breakthrough asset of 2025, with predictions of it hitting new highs worth $4900 in the near future.
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UBS has now come up with the latest market projection, adding how gold may continue to rake in gains in the near future. The firm predicts the yellow metal to hit a new high of $4900, as Federal Reserve rate cut anticipations continue to fuel its momentum and rally prospects.
“We expect gold demand to rise further in 2026, influenced by anticipated Fed rate cuts, lower real yields, continued geopolitical uncertainties, and changes in the domestic US policy environment,” UBS wrote in a note on Thursday.
The firm later shared how deteriorating the US fiscal outlook is also pushing the dollar to the edge, with gold banking on gains as a leading safe haven asset. UBS added how the demand for ETFs may continue to project a strong demand in 2026, leading the change forward.
“We believe this will further undermine the appeal of the US dollar and therefore boost investment flows into bullion,” the analysts noted. “In fact, global gold ETFs recorded their largest monthly inflow in September (USD 17bn), according to the World Gold Council, making the USD 26bn in inflows over the three months to September the strongest quarter on record. ” Kitco quoted
In addition to this, the firm shared how central banks around the world may continue to purchase gold in 2026, driving its value up a notch.
“UBS analysts also cited the World Gold Council’s Q3 Gold Demand Trends report, which confirmed “very strong and accelerating buying” from both central banks and individual investors.” Kitco shared
Current Outlook Of The Asset
According to Rashad Hajiyev, projections of gold hitting $5K are very much on track. Hajiyev was quick to share how gold looks primed to explore $5K as it breaks out of its current consolidation.
“I expect gold to silver ratio (GTS) to breakdown from the 4-year box formation and reach my long standing target around 57. With minimum $5k gold target and the peak of the present cycle and GTS 57, I expect a $85 -95 silver price…”
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