TAIPEI (Taiwan News) — DBS Bank Taiwan on Tuesday raised its gold price target for the first half of 2026 to US$4,450 per troy ounce (31.1 grams), or NT$136,381, per CNA.

Gold prices climbed 2.3% on Monday, reaching US$4,346.39 per ounce in spot trading. Chen Yu-chia (陳昱嘉), senior vice president of DBS Taiwan’s investment advisory division, said the bank remains bullish on gold despite its strong gains this year, according to CNA.

The bank cited expectations of rising inflation driven by the US adopting more accommodative monetary and fiscal policies. Demand for real assets, such as private infrastructure and gold, has been supported by central-bank purchases and investors turning to gold as a safeguard against a weaker dollar.

Chen said key factors influencing gold include political and geopolitical uncertainty, such as US presidential policies and global risks. He cautioned that easing of these uncertainties could put pressure on prices.

Investors are advised to monitor both retail and purchases central-bank purchases, as continued buying could reinforce gold’s role as a portfolio-diversification tool. Chen also noted that the traditional inverse relationship between gold and US interest rates weakened in the first half of the year, and a smaller-than-expected rate cut by the Federal Reserve could reduce liquidity.

Data from the World Gold Council showed that global central banks added 19,000 kilograms of gold in August, reversing July’s decline. Year to date, gold prices have risen more than 60%, outperforming major asset classes, according to UDN.