JPMorgan's Latest Forecasts Are Bullish for Gold: Buy the Dip
The underlying outlook for gold remains excellent, even as near-term pressures could persist.
JPMorgan's Latest Forecasts Are Bullish for Gold: Buy the Dip
Overview
The price of gold has dipped to about $4,320 per ounce in 2026, and forecasters, including JPMorgan, have had to reduce their full-year gold price forecasts accordingly. Still, even though JPMorgan reduced its 2026 forecast to $5,243 per ounce from $5,708, it still implies gold reaching $5,000 per ounce in the fourth quarter -- a 39% increase.
While that forecast may prove overly optimistic, the rationale behind it is sound, and gold remains an attractive asset. Here's why.
Details
JPMorgan Global's argument is that while rising interest rates risk making gold a less attractive asset to hold, longer-term themes driving underlying demand remain in place. These factors include a higher inflationary environment and a concomitant erosion of purchasing power; ongoing U.S. budget deficits and rising debt; continuing geopolitical tensions that may encourage a reduced appetite for U.S. debt; and "U.S. policy unpredictability."
Source
Originally published at www.fool.com.
