Gold-Linked ETF Drops as JPMorgan Foresees Near-Term Price Pressure from Demand Softness

Stock News07-07

The Samsung Gold Leverage ETF (07299) fell over 2%, trading down 2.16% at HK$21.72 by the time of writing, with a turnover of HK$5.04 million.

Analyst Outlook on Gold Prices

A recent report from JPMorgan suggests that gold prices may face near-term limitations due to weakening demand, likely remaining range-bound. The bank forecasts 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.

JPMorgan noted that the risks to its forecast are skewed to the downside, as stronger-than-expected economic data through the remainder of the summer could prompt the Federal Reserve to initiate interest rate hikes earlier than anticipated.

Contrasting Bullish Views from Other Institutions

In contrast to JPMorgan's cautious stance, several other major banks hold a more bullish outlook on gold. UBS has set a 12-month price target of $5,200, citing expectations for a repricing of Federal Reserve monetary policy and potential pressure on the US dollar.

Similarly, Morgan Stanley is optimistic about gold prices reaching $5,200 in the second half of the year, though it cautions that achieving this target is contingent on sustained, substantial inflows into gold ETFs.

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