Gold’s recent slide may prove short-lived, with market strategists and analysts projecting the precious metal could reach as high as $5,000 an ounce by 2026 or 2027, driven by renewed investor demand and shifting global macro trends.

After briefly slipping below $4,000 an ounce in October, gold has rebounded above that threshold, though prices remain roughly 5% below record highs near $4,350. Analysts at UBS Group AG say gold is becoming an increasingly critical component in diversified investment portfolios, as investors look beyond traditional assets such as equities and bonds.

The Swiss bank noted that central banks’ ongoing reserve diversification and steady retail inflows through exchange-traded funds could continue to propel prices higher in the coming years.

“Gold’s role as a strategic asset is expanding,” UBS analysts wrote in a recent note. “The combination of macro uncertainty, structural demand from central banks, and lower real yields continues to underpin the metal’s appeal.”

Jeff Jacobson, a strategist at 22V Research, also remains constructive on gold despite recent volatility. He pointed to the metal’s ability to hold above its 50-day moving average as a sign of resilience. “Buying on weakness continues to make sense given the broader uptrend,” Jacobson said.

A weaker U.S. dollar and declining bond yields could further bolster the metal’s outlook, analysts said. Both factors tend to enhance gold’s attractiveness by reducing the opportunity cost of holding non-yielding assets and by amplifying demand from investors seeking safe havens.

With expectations for softer monetary conditions and persistent geopolitical uncertainty, bullish sentiment around gold remains intact.

“Gold’s long-term trajectory continues to look higher,” UBS wrote. “The conditions are aligning for another strong run in the years ahead.”