JP Morgan said late on Sunday that it expects strong demand from central banks and institutional investors to drive gold prices higher, projecting the metal could reach $6,300 per ounce by the end of 2026. The U.S. banking giant cited ongoing geopolitical tensions, currency fluctuations, and sustained interest in safe-haven assets as key factors likely to support gold over the coming months.
Gold extended its recent decline on Monday, trading at $4,677.17 per ounce as of 0450 GMT. Earlier in the session, bullion had dropped more than 5%, marking its lowest level in over two weeks. The pullback came after gold scaled a record high of $5,594.82 on Thursday, fueled by a weaker U.S. dollar and concerns about Federal Reserve policy independence.
Analysts noted that while gold’s sharp retracement may appear alarming, it reflects typical volatility in the precious metals market following a rapid surge to new highs. “Investors are taking profits after the recent rally, but the underlying fundamentals, including inflation fears, monetary policy uncertainty, and central bank purchases, remain supportive for gold over the medium term,” said a metals strategist at a European investment bank.
JP Morgan highlighted that central banks’ continued purchases, particularly from emerging markets, along with investment flows into exchange-traded funds, are expected to underpin long-term demand, helping gold recover from its short-term dip.
The market will continue to monitor U.S. economic indicators, Federal Reserve guidance, and geopolitical developments, all of which are likely to influence near-term price movements.
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