Gold Target Price 2026: Will gold prices surge, surpassing ₹2 lakh in four months? These three reasons will drive the price higher..
If you're considering buying jewelry or investing in gold, this news is for you. Gold could once again make a historic leap (Gold Price Prediction).
Global tensions, record central bank purchases, and a potential interest rate cut—these three major factors could propel gold to new heights in 2026.
Global brokerage firm UBS has also announced its target price for this year (Gold Target Price 2026). According to UBS, gold could surpass $6,200 per ounce (₹1,98,484 per 10 grams in Indian currency).
Record purchases in 2025, demand now high.
According to UBS, central banks purchased 863 metric tons of gold in 2025. This figure could reach 950 tons in 2026. Gold ETFs are also expected to see significant investment of up to 825 tons.
World Gold Council (WGC) data shows that total global demand surpassed 5,000 metric tons for the first time in 2025. Rising incomes and jewelry demand in Asia could support gold in the long term.
At the same time, supply remains relatively stable. Wood Mackenzie estimates that 80 mines will reach their current production plans by 2028.
Geopolitical tensions will provide support.
As tensions between the US and Iran escalate, oil prices reached their highest level since July. Brent crude rose above $72 per barrel and is currently trading around $71.5, up about 4% from the beginning of the week.
US military deployments have increased in the Middle East, and President Donald Trump has issued a 10-15-day warning to Iran regarding the nuclear deal.
In such an environment, investors seek safe havens, and gold is a traditional preferred hedge. Gold is currently trading around $5,035 per ounce, having risen about 0.8% amid recent tensions.
Fed easing could also provide a boost.
UBS believes the US Federal Reserve's cycle of interest rate cuts will continue. Two 25-basis-point rate cuts are expected by September. A weak dollar and falling real yields are generally considered positive for gold.
How far could prices go in 2026?
UBS estimates that gold could reach $6,200 per ounce (Gold Price Target 2026) by mid-2026, although after some consolidation by the end of the year, prices could fall to $5,900.
Strong demand, limited supply, potential Fed rate cuts, and rising geopolitical risks could all push gold toward a significant surge in 2026.
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