GFN – GENEVA: Swiss private bank Union Bancaire Privée (UBP) has resumed buying gold after trimming positions during the Iran-driven selloff, signaling renewed confidence in bullion’s structural uptrend and reiterating a $6,000 year-end price target.
In the latest report from Bloomberg, UBP said it is gradually rebuilding gold exposure in discretionary portfolios after cutting allocations from roughly 10% to 3% during the recent drawdown, with positions now recovering toward 6% as market conditions stabilize.
“We have taken the first steps to rebuild” gold portfolios after the flush-out of “one-sided positions.”
The bank attributed the earlier selloff to a combination of rising rate expectations and liquidity stress, as investors were forced to liquidate gold holdings to meet margin calls and cover losses across other asset classes. That process, UBP noted, has largely normalized positioning across both institutional and retail segments.
“The risk of inflation is coming in more immediately.”
Despite short-term pressure tied to higher energy prices and geopolitical uncertainty, UBP maintains that the long-term case for gold remains intact. Structural drivers, including sustained central bank buying, persistent fiscal deficits, and ongoing geopolitical tensions, continue to underpin its bullish outlook.
UBP reiterated its forecast for gold to reach $6,000 per ounce by year-end, aligning with similar calls from major institutions such as Goldman Sachs and ANZ Banking Group, both of which have recently reaffirmed higher price targets for bullion.
Market conditions remain volatile. Gold prices have declined roughly 10% since the onset of the Iran conflict, driven in part by surging oil prices and renewed inflation concerns following escalating tensions around the Strait of Hormuz. However, recent inflows into gold-backed ETFs suggest dip-buying activity is emerging, with global holdings rising by approximately 20 tons in April after heavy outflows the prior month.
UBP indicated that further allocation increases will depend on greater geopolitical clarity, as investors assess the durability of current macro conditions and the trajectory of inflation, rates, and global risk sentiment.
