In a striking divergence from the traditional value investing philosophy of Warren Buffett, major global investment banks are aggressively raising their price targets for gold, an asset the billionaire investor has famously criticized for its lack of productivity.
This week, UBS escalated its bullish outlook, lifting its gold price “upside case” to $4,900 per ounce from $4,700. The bank also raised its mid-2026 target to $4,500 per ounce from $4,200, reaffirming its “attractive” rating and maintaining a long position in the metal. UBS emphasized that gold remains an effective portfolio hedge even at elevated levels.
In a mid-November interview on “METALS 100”, Robert T. Boyd, CEO of Endurance Gold (TSXV: EDG), provided an update on the company’s latest developments. Endurance Gold Corporation is a precious-metals exploration and development company focused on acquiring, exploring and advancing highly prospective mineral properties across North America. The Company’s current exploration focus centres on the road-accessible Reliance Gold Project, located near Gold Bridge, BC, in the historic Bralorne–Pioneer gold camp.
The rally is underpinned by a potent mix of macroeconomic and geopolitical drivers. UBS analysts cited expectations for further Federal Reserve rate cuts—which push down real yields—persistent geopolitical uncertainties, political noise surrounding the US midterm elections, and rising fiscal concerns as factors that should sustain robust demand from both investors and central banks. The bank also anticipates a potential recovery in jewelry consumption in the second half of 2026.
Gold has been one of the standout performers of 2025. Spot gold (XAUUSD) skyrocketed from around $2,623 per ounce at the start of the year to an all-time high of approximately $4,381 on October 17, marking a staggering surge of nearly 60%. Although the metal subsequently experienced a sharp correction and briefly dipped below the $4,000 threshold, it has since stabilized. With a year-to-date gain of over 52%, gold is on track for its most substantial annual return since 1979.
UBS is not alone in its optimism. Wall Street peers have published even more ambitious forecasts. Goldman Sachs, for instance, has projected gold will reach $4,440 per ounce by the end of March and climb to $5,055 by late 2026. Similarly, JPMorgan expects the price to hit $5,055 per ounce toward the end of next year, with a further rise to $6,000 per ounce in 2028.
For investors wondering if the recent pullback signals an end to the rally or a buying opportunity, market strategists advise focusing on the long-term picture. “Investors should focus on the long-term benefits of investing in gold. Short-term price movements, like the October 21 sell-off, don’t alter the asset’s underlying fundamentals,” said Peter Reagan, a financial market strategist at Birch Gold Group.
The collective bullishness from institutions stands in stark contrast to the long-held view of Warren Buffett, who once remarked that gold “gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility.” This fundamental disagreement highlights a pivotal moment where modern portfolio managers, seeking a safe haven from volatility and a weak dollar, are rewriting the rules of wealth preservation.
