Gold May Face Short-Term Headwinds Before Potential Surge to $4,500 by Late 2026, JPMorgan Says

Deep News05:31

JPMorgan suggests that gold prices could be constrained in the near term, likely continuing to trade within a range.

The primary reasons for this are weakened purchasing power in key demand areas and gold's renewed sensitivity to changes in real interest rates, factors that may curb further price appreciation. However, the bank maintains a bullish outlook for the medium to long term. It anticipates a gradual recovery for gold in the second half of 2026, with an average price of around $4,300 per ounce in the third quarter, rising to approximately $4,500 in the fourth quarter.

Looking ahead to 2027, JPMorgan believes gold prices have the potential to extend their gains. Key drivers are expected to include continued purchases by central banks, strengthening physical demand, and the persistence of long-term structural allocation needs. These factors are seen as supporting gold's long-term appeal as a safe-haven and reserve asset.

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