UBS Cuts Gold Price Forecast Amid Strong U.S. Economic Data
Gold | 2026-06-16 07:59:12 | By Paul Ploumis
It must be noted that gold prices, which witnessed a strong rally earlier this year, have surrendered a significant portion of their gains amid changing market expectations.
SEATTLE (Scrap Monster): Global investment bank UBS Group has lowered its short-term outlook for gold prices, citing stronger-than-expected U.S. economic performance and shifting expectations for U.S. Fed policy. However, the bank continues to remain optimistic about the precious metal’s longer-term prospects.
In a recent market note, UBS analysts said gold could face additional downside pressure in the near term, driven by anticipated reduced investor appetite for non-yielding assets. The bank estimates that bullion prices may retreat toward the $3,850-$4,000 per ounce range, reflecting a more challenging macroeconomic environment.
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Why aren't gold prices rising, despite Iran war uncertainty?
According to the analysts, gold has struggled to gain momentum despite heightened geopolitical tensions in the Middle East. The gold market’s reaction to these developments was relatively subdued. On the other hand, gold was largely influenced by traditional drivers such as interest rates and the strength of the U.S. dollar.
It must be noted that gold prices, which witnessed a strong rally earlier this year, have surrendered a significant portion of their gains amid changing market expectations.
Meanwhile, UBS maintained a favorable long-term outlook for the yellow metal. Once macroeconomic conditions become more supportive over the next 12 months, gold prices are likely to stage a recovery, it added.