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UBS urges investors to hold gold for portfolio diversification amid inflation, fiscal concerns, and strong central bank demand.

Market News
09 Sep 2026
Kitco
View Source
Bullish
UBS urges investors to hold gold for portfolio diversification amid inflation, fiscal concerns, and strong central bank demand.

UBS analysts highlight gold's strategic importance as a portfolio hedge amid rising US Treasury yields, inflation, and geopolitical risks. Despite recent price dips due to Fed rate hikes and a strong dollar, UBS expects gold to benefit from sustained central bank purchases, especially by China, and a gradual shift away from the US dollar. They project gold prices could rise toward $5,000 per ounce by early 2027, supported by lower real interest rates and ongoing diversification trends. UBS recommends investors use price weakness as an opportunity to build long-term gold exposure for portfolio stability and inflation protection.

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