Gold Above $4,500 — UBS Sees $5,400 Ahead

Gold has pushed firmly above $4,500, extending its strong August rally and keeping buyers in control.

UBS has raised its 12-month gold price target to $5,400/oz, citing lower real interest rates, continued investment demand and a weaker US Dollar as key supports.

From the $4,500 area, the target implies roughly 20% potential upside.

The move above $4,500 also puts the focus on whether gold can hold the breakout and build momentum toward fresh highs. A sustained move above this level would keep the near-term trend firmly bullish, while a pullback could bring profit-taking after the recent gains.

For now, UBS sees the current rally as more than just a short-term move, with the combination of softer yields, dollar weakness and strong demand continuing to support the broader gold trend.