UBS boldly claims that gold prices are expected to challenge $5,000 in the first half of next year, supported by declining real interest rates and central bank purchases of gold.

According to the latest report released by UBS strategists on Thursday, declining real interest rates will drive investors back to the gold market, while a weak dollar and strong central bank demand for gold will together push gold prices towards the $5,000 per ounce mark in the first half of next year.