US-Iran Negotiations Affect Gold Prices; UBS: Year-End Target of $5600 Unchanged
UBS maintains its year-end gold price target at $5600 per ounce, citing diversified asset allocation demand, despite US-Iran negotiations influencing international gold prices. Bank of Taiwan, however, expects gold prices to remain in a range-bound consolidation this week.
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- 📰 Published: May 12, 2026 at 13:10
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Central News Agency
(Central News Agency reporter Lu Yen-tzu, Taipei, 12th) The progress of US-Iran negotiations continues to affect international gold prices. UBS stated today that diversified asset allocation demand will continue to drive gold prices higher, thus maintaining its year-end gold price target of $5600 per ounce and remaining bullish on gold. Bank of Taiwan, however, reminded that gold prices are in a tug-of-war, range-bound consolidation, and will remain volatile within a range this week.
International gold prices rose to over $4760 per ounce last week due to progress in US-Iran negotiations, then fell back to around $4715. This week, gold prices continued to rise, briefly touching the $4770 range this morning before turning lower.
Joni Teves, Precious Metals Strategist at UBS Global Research, pointed out at an online media sharing session today that since March this year, market concerns about the impact of the Middle East conflict on high oil prices and inflation, and whether it might prompt the US Federal Reserve (Fed) to adopt more hawkish policies, have been the main reasons for recent gold price pressure.
She stated that, excluding short-term volatile factors, the demand for diversified asset allocation has driven gold prices higher in recent years. This trend remains very clear from the perspectives of institutional investors, central banks, and retail investors. Therefore, UBS maintains its bullish view on gold, still believing that gold prices have the opportunity to rebound from current levels and continue to set new highs.
She explained that the gold market consolidation may continue in the short term, but by the second half of this year, when the direction of inflation and the impact of energy prices become clearer, it will be a re-entry point for investors.
Regarding the sale of gold by countries like Turkey in March this year, which once raised concerns about a shift in central bank buying, she expects that the trend of central banks continuing to buy gold will persist. Furthermore, as macroeconomic uncertainties and geopolitical risks increase, their trend of seeking diversified allocation will be further strengthened.
As for the target price, she stated that UBS still maintains its year-end gold target price at $5600 per ounce; it also maintains a positive view on silver, expecting it to rise in tandem with gold, with a potential increase of over $100.
On the other hand, the Precious Metals Department of Bank of Taiwan released a report this week stating that although gold prices attempted to stand above the monthly moving average and successfully held the key support of $4500 per ounce, with short-term moving averages gradually flattening, technically it is still in a tug-of-war, range-bound consolidation.
Bank of Taiwan pointed out that in the coming week, the market will continue to focus on whether there is substantial progress in Middle East negotiations and the upcoming US inflation data. If the US and Iran can reach a concrete consensus on opening the Strait of Hormuz, leading to a retreat in oil prices and the US dollar index, gold prices are expected to challenge the $4800 per ounce integer mark, opening a new wave of upward trend. Conversely, if the geopolitical stalemate remains unresolved or inflation data is higher than expected, gold prices may retest $4600 for support.
Bank of Taiwan explained that, overall, gold prices are expected to remain in a range-bound consolidation this week, and close attention should be paid to news developments. (Editor: Yang Kai-hsiang) 1150512
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(Central News Agency reporter Lu Yen-tzu, Taipei, 12th) The progress of US-Iran negotiations continues to affect international gold prices. UBS stated today that diversified asset allocation demand will continue to drive gold prices higher, thus maintaining its year-end gold price target of $5600 per ounce and remaining bullish on gold. Bank of Taiwan, however, reminded that gold prices are in a tug-of-war, range-bound consolidation, and will remain volatile within a range this week.
International gold prices rose to over $4760 per ounce last week due to progress in US-Iran negotiations, then fell back to around $4715. This week, gold prices continued to rise, briefly touching the $4770 range this morning before turning lower.
Joni Teves, Precious Metals Strategist at UBS Global Research, pointed out at an online media sharing session today that since March this year, market concerns about the impact of the Middle East conflict on high oil prices and inflation, and whether it might prompt the US Federal Reserve (Fed) to adopt more hawkish policies, have been the main reasons for recent gold price pressure.
She stated that, excluding short-term volatile factors, the demand for diversified asset allocation has driven gold prices higher in recent years. This trend remains very clear from the perspectives of institutional investors, central banks, and retail investors. Therefore, UBS maintains its bullish view on gold, still believing that gold prices have the opportunity to rebound from current levels and continue to set new highs.
She explained that the gold market consolidation may continue in the short term, but by the second half of this year, when the direction of inflation and the impact of energy prices become clearer, it will be a re-entry point for investors.
Regarding the sale of gold by countries like Turkey in March this year, which once raised concerns about a shift in central bank buying, she expects that the trend of central banks continuing to buy gold will persist. Furthermore, as macroeconomic uncertainties and geopolitical risks increase, their trend of seeking diversified allocation will be further strengthened.
As for the target price, she stated that UBS still maintains its year-end gold target price at $5600 per ounce; it also maintains a positive view on silver, expecting it to rise in tandem with gold, with a potential increase of over $100.
On the other hand, the Precious Metals Department of Bank of Taiwan released a report this week stating that although gold prices attempted to stand above the monthly moving average and successfully held the key support of $4500 per ounce, with short-term moving averages gradually flattening, technically it is still in a tug-of-war, range-bound consolidation.
Bank of Taiwan pointed out that in the coming week, the market will continue to focus on whether there is substantial progress in Middle East negotiations and the upcoming US inflation data. If the US and Iran can reach a concrete consensus on opening the Strait of Hormuz, leading to a retreat in oil prices and the US dollar index, gold prices are expected to challenge the $4800 per ounce integer mark, opening a new wave of upward trend. Conversely, if the geopolitical stalemate remains unresolved or inflation data is higher than expected, gold prices may retest $4600 for support.
Bank of Taiwan explained that, overall, gold prices are expected to remain in a range-bound consolidation this week, and close attention should be paid to news developments. (Editor: Yang Kai-hsiang) 1150512
Choose to stand with facts, every sponsorship you make is a force to protect press freedom.
Download the Central News Agency's "First-hand News" APP to stay updated with the latest news.
The text, images, and audio-visual content of this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.