BlockBeats report, August 7: Uli Hofmann-Burckhardt, Chief Investment Officer at UBS, and her team stated: “This rally in gold is supported by fundamental factors. We expect gold prices to move toward $5,000 per ounce in the first half of 2027.” Following the U.S. and Israel’s military strikes against Iran at the end of February, gold prices initially declined under pressure. UBS strategists noted that near-term risks remain, as rising oil prices, expectations of a more hawkish Federal Reserve monetary policy, or increased attractiveness of bonds could weigh on gold; however, institutions remain optimistic about gold’s medium- to long-term outlook.
Hoffman-Burshardi stated that the team anticipates inflation will gradually ease, allowing the Federal Reserve to hold interest rates steady this year and resume rate cuts in 2027. “Growing expectations for lower policy rates are likely to suppress real yields, weigh on the dollar, and boost investment demand for gold, creating a more favorable market environment for gold.”