The latest report from the UBS Wealth Management Investment Director's Office points out that the price of gold is still far below the peak in January, but strong demand from institutions and retail investors is driving the price of gold higher. The bank continues to believe that gold is an effective tool for portfolio diversification and hedging, and expects the price of gold to rise to $5900 per ounce by the end of the year. UBS indicates that demand for gold bars and coins has reached record levels. According to the World Gold Council report, the most notable data is a 42% increase in demand for gold bars and coins. Global demand for gold bars and coins reached 474 tons, with individuals buying the most gold ever in a quarter, mainly coming from Asian markets. This suggests that gold demand is not only coming from institutional investors, but also from retail investors who are actively diversifying their portfolios with gold. In addition, sovereign demand remains strong, with central bank purchases increasing by 3% to 244 tons. This should keep central bank purchases for the year at 900 to 1000 tons, similar to the high levels seen in recent years. Strong interest from Middle Eastern sovereign wealth funds indicates that demand from institutional investors is expanding, and official sector buying will continue to provide structural support for the price of gold. Therefore, UBS believes that the recent weakness in the price of gold is temporary. The ongoing uncertainty in the Middle East may prevent a significant surge in the price of gold in the short term, but they continue to see the value of gold as a hedge, as concerns about political uncertainty and fiscal deficits should further support demand. A weaker US dollar before the end of the year should also benefit the performance of gold prices.