Silver Rises Over 120% YTD 
Gold’s inability to sustain levels above $3,400/oz on three recent occasions might appear concerning, but UBS investment strategists argue this shouldn’t deter investors from maintaining gold positions.
After struggling to break $2,100/oz until February 2024, gold has surged over 60% in 15 months, driven by both traditional factors (interest rates, inflation) and emerging concerns (trade conflicts, policy uncertainty).
Central bank surveys reveal these factors remain highly influential in reserve allocation decisions.
UBS recommends a 5% gold allocation for balanced portfolios, with a price target of $3,800/oz.
For indirect exposure, gold miner bonds offer attractive 6% yields, benefiting from improved operational efficiency and stronger balance sheets.
Additionally, UBS strategists expect the EUR to appreciate toward 1.20 by June 2026, while European quality stocks present value opportunities with P/E premiums below 10-year averages.
