Gold Rate Prediction: UBS Predicts Gold Price at $4,500 in 2026; Silver Rate to Outperform with $55-$65 Target

Gold and silver are showing signs of strength heading into 2026, with UBS maintaining a bullish outlook on the precious metals market. Market experts point to ongoing macroeconomic uncertainty, geopolitical risks and expectations of further US Federal Reserve easing as key factors supporting demand for safe-haven assets.

Despite recent price volatility, investors are expected to continue favoring gold and silver for portfolio diversification, keeping the metals well-supported in the months ahead.

Gold Demand to Stay Strong Amid Macroeconomic Uncertainty and Fed Easing: UBS Strategist

Joni Teves, Precious Metals Strategist at UBS, told CNBC-TV18 that ongoing macroeconomic uncertainty, geopolitical tensions, and expectations of further easing by the US Federal Reserve are likely to keep safe-haven assets like gold in demand. She acknowledged recent sharp swings in gold prices but said the overall structural outlook remains positive.

"We remain bullish on gold overall. We think that the market can continue to see new highs over the coming year," Teves said as CNBC-TV18 reported.

Gold Rate Prediction: UBS Projects Gold Prices at $4,500 in 2026, Sees $5,000 Upside Potential

UBS has set a gold price target of $4,200 for 2025 and $4,500 for 2026. The brokerage also sees a potential upside of $5,000, though this would require stronger-than-expected catalysts, such as weaker US economic data, a more dovish Federal Reserve stance, or increased concerns about the Fed's independence.

Portfolio diversification remains a key driver for gold demand. Investors are adding to gold holdings as real interest rates are expected to fall further and central banks continue to increase reserves. Physical investment demand has also remained strong, even though jewellery demand has been under pressure.

While the long-term outlook for gold is positive, Teves expects the market to experience some consolidation through the end of the year. "We do expect a bit of consolidation to continue... investors are increasingly less inclined to put on large positions into year-end," she said, noting that buying on dips should help limit downside risks.

Silver Price Prediction by UBS: Expected to Outperform Gold, Target $55-65

For silver, UBS expects the metal to benefit from gold's strength and tight market conditions. "Our expectation in silver is that it outperforms gold on bursts," Teves said, describing it as a higher-beta way to play the bullish trend in precious metals. However, she cautioned that weaker global growth could weigh on silver's industrial demand, and unlike gold, silver does not receive support from central banks.

UBS' silver target stands at $55, with a bullish scenario of $60-65 if gold rallies sharply and lifts the broader precious metals market.

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