Today, Wednesday, JP Morgan raised its long-term forecast for gold prices to $4,500 per ounce, while maintaining its forecast for the end of 2026 at $6,300.
Gold rose in spot transactions by about 20% this year, recording the highest level in 3 weeks at $5,248.89 per ounce yesterday, Tuesday, which is lower than its record peak on January 29 at $5,594.82.
This came after a rise of more than 64% in 2025 in gold, as a traditional safe haven.
In a note to clients, the bank pointed to increased central bank purchases and public announcements about the divestment of US Treasury investments and countries shifting their revenue bases from (the dollar) to the Chinese renminbi.
Given these developments, the bank said it raised its assessment of a “reserve currency paradigm shift” and “significant investor diversification,” leading to its long-term forecast for the price of an ounce at $4,500.
The bank added that many long-term pricing tools for industrial commodities, such as incentive pricing and marginal cost analysis, could be less applicable, because supply and demand factors for gold differ from those for other commodities.
Geopolitical risks, a series of interest rate cuts from the Federal Reserve, central bank purchases, and gold-backed ETF inflows have pushed gold to multiple record highs over the past year.
