UBS expects gold to climb toward $5,900–$6,200 in 2026 as debt concerns, geopolitics and de-dollarisation boost demand.Summary:UBS Global Wealth Management maintains a bullish stance on gold despite the metal’s mixed historical performance during military conflicts.The bank argues that broader macroeconomic and political uncertainty — not just the Iran conflict — supports a constructive outlook for bullion.UBS highlights rising U.S. debt, weakening confidence in Treasuries and ongoing geopolitical tensions as structural drivers of demand.The firm also points to de-dollarisation trends and central bank diversification as longer-term tailwinds.UBS forecasts gold prices could reach $5,900–$6,200 per ounce during 2026.The bank recommends mid-single-digit allocations to gold in diversified portfolios to help hedge macro risks.UBS Global Wealth Management expects gold prices to climb toward US$5,900–$6,200 per ounce during 2026, citing rising fiscal risks in the United States, geopolitical tensions and structural shifts in the global monetary system.The bank said gold’s performance during military conflicts historically has been mixed, meaning wars alone do not guarantee sustained rallies in the metal. However, UBS argues the current macroeconomic backdrop presents a broader set of supportive drivers that extend well beyond the latest escalation in the Middle East.In particular, UBS highlighted concerns surrounding the trajectory of U.S. government debt and a gradual erosion of confidence in U.S. Treasury assets as important catalysts for continued demand for alternative stores of value.Those dynamics are unfolding alongside heightened geopolitical tensions and a longer-term shift among central banks and investors toward diversification away from the U.S. dollar. This trend, often described as “de-dollarisation,” has been visible in recent years through record levels of central-bank gold purchases and growing interest in non-dollar reserve assets.UBS believes these forces could underpin a structurally stronger gold market over the coming years, helping to lift prices well beyond previous cycle highs.The firm continues to rate gold as attractive within its global asset allocation framework and maintains a long position in the metal. a modest allocation in the mid-single digitsGold is widely viewed as a hedge against inflation, geopolitical risk and financial instability. Its role within portfolios has also grown as investors increasingly question the long-term sustainability of global public debt levels and the resilience of traditional safe-haven assets.UBS said that while the Iran conflict may contribute to volatility in the near term, the broader drivers supporting gold are likely to be structural in nature, reinforcing the case for strategic exposure to the metal. This article was written by Eamonn Sheridan at investinglive.com.