UBS has projected that gold prices could climb to $4,200 per ounce by mid-2026, driven by a weakening US dollar, increased central bank gold reserves, and rising investment in exchange-traded funds (ETFs). The financial institution suggests maintaining a 5% gold allocation in portfolios, highlighting its role as a hedge against inflation and geopolitical risks due to its low correlation with stocks and bonds. However, UBS cautions investors about potential gold price volatility and changes in US monetary policy.