In early Asian trading on May 18, spot gold (London gold) fell below $4,500 per ounce for the first time since late March, dropping as much as approximately 1.3% to touch $4,480.01 per ounce. By the time of writing, the losses had narrowed, with spot gold last trading at $4,538.28 per ounce, down 0.02%. COMEX gold futures were quoted at $4,551 per ounce, down 0.24%.
On the news front, gold and silver prices faced downward pressure last week, influenced by rising U.S. Treasury yields and a stronger U.S. dollar index. The main New York gold futures contract price fell by a cumulative 3.57% for the week, while the main silver futures contract price dropped by 4.10%. Additionally, tensions in the Middle East have not shown significant easing this week.
JPMorgan has revised its 2026 average gold price forecast downward from $5,708 to $5,243 per ounce, citing softening short-term demand for the metal. Analysts from the bank stated in a report released on Sunday, May 17, that this lull is reflected in stagnant trading activity and demand indicators. They noted persistently low total open interest and trading volume in COMEX gold futures, with managed money net futures positions hovering at low levels and subdued inflows into gold ETFs.
Despite the downward revision, the bank maintains a bullish outlook, expecting gold prices to climb to $6,000 per ounce by the end of 2026 as demand strengthens in the second half of that year. "We maintain our medium-term bullish view and forecast that gold demand from investors and central banks will re-accelerate in the second half of 2026, once the immense energy and inflation uncertainty dissipates," the analysts added.
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