Gold prices surged by over 24% in January, UBS sets a gold target of $6200 per ounce for 2026. Know the future outlook.
Gold prices are once again in the spotlight in the global market. So far in January, gold prices have seen a sharp increase of over 24 percent. This marks the sixth consecutive month of gains for gold. Geopolitical tensions, economic uncertainty, and safe-haven demand have led to a surge in investor interest in gold.
US gold futures for February delivery rose 1.3% to $5390.80 per ounce. Meanwhile, leading global brokerage UBS has raised its price target for gold to $6200 per ounce for March, June, and September 2026, further strengthening expectations of a continued rally in the gold market.
Gold remains strong despite profit-taking
According to Reuters, spot gold prices in the global market fell 0.9% to $5346.42 per ounce due to a strong dollar and profit-taking pressure. During trading, it saw a 4.6% drop, falling to $5149.99, but later recovered.
The previous day, gold had touched a record high of $5594.82 per ounce. Despite the interim pressure, gold is on track for its biggest monthly gain since 1980.
Market experts say that globally, investors are moving out of risky asset classes like equities and cryptocurrencies and investing in safe-haven assets like gold.
Silver Prices Also Witness Historic Surge
It’s not just gold; silver prices are also experiencing a tremendous surge. In the global market, the spot price of silver fell by 0.2% to $115.83 per ounce. However, during the day, it had dropped as low as $108.84, a decline of 6.6%.
Notably, silver reached a record high of $121.64 per ounce on Thursday. So far this month, silver has gained approximately 62%, which is considered its best performance in a single month.
Geopolitical tensions are rising, driving up demand for safe-haven investments
A major reason for the surge in today’s gold prices is international tension. Former US President Donald Trump recently hinted that another war could be on the horizon. This is being linked to the escalating tensions between Iran and the United States.
Trump stated that he has resolved eight wars so far and believes another conflict may soon emerge. In this environment, investors are increasing their investments in safe-haven assets like gold and silver to mitigate risk.
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Where could gold go next?
Analysts see a strong possibility of further gains in gold in the coming months.
- UBS has raised its gold price target for March, June, and September 2026 from $5,000 to $6,200 per ounce.
- Societe Generale estimates that gold could reach $6,000 per ounce by the end of the year.
- Morgan Stanley says the current rally could continue, and in a bullish scenario, gold could reach $5,700 per ounce.
Experts believe that if global uncertainty persists and central banks continue to buy gold, prices could reach new record highs.
What does this mean for investors?
According to market experts, gold remains a strong option for long-term investors in the current environment. While short-term volatility may persist, the structural support for gold still appears positive.