Gold Market Report: UniCredit Sees Potential Upside to $5,200 by Year-End

Advisory Bazaar Info Services

Gold prices have slipped below $4,310/oz, falling nearly 3% over the past 48 hours as higher crude oil prices and rising US Treasury yields increased expectations of further Federal Reserve rate hikes.

Spot gold declined 2.74% on Tuesday and fell another 0.43% to $4,309.40/oz on Wednesday morning. The metal briefly touched $4,284.34 after retreating from $4,461.90.

UniCredit Remains Bullish on Gold

Despite the recent correction, UniCredit has raised its year-end 2026 gold forecast to $4,400–$5,200/oz. The bank also sees meaningful upside potential toward the $5,000 level.

The bullish outlook is supported by continued central-bank gold purchases, renewed ETF inflows, fiscal sustainability concerns and long-term inflation risks.

According to World Gold Council data, central banks recorded net gold purchases of 289 tonnes in Q2, highlighting continued structural demand.

Rising Yields Weigh on Near-Term Sentiment

The recent decline highlights gold’s sensitivity to interest rates. Higher Treasury yields increase the opportunity cost of holding non-yielding bullion and provide support to the US dollar.

Oil-driven inflation concerns and changing expectations around Federal Reserve policy could keep gold volatile in the near term.

Key Levels & Market View

* Support: $4,284/oz

* Resistance: $4,400/oz

* UniCredit Forecast: $4,400–$5,200/oz

* Key Drivers: US employment data, crude oil prices and Treasury yields

Outlook: Gold may remain under pressure in the short term if yields and the dollar continue to rise. However, strong central-bank demand, ETF inflows and persistent fiscal concerns remain supportive for the medium-to-long-term outlook. A break below $4,284 could extend the correction, while a sustained move above $4,400 may revive the bullish momentum.