Source : INDIA TODAY NEWS
Gold could be headed for a record-breaking run, with JP Morgan forecasting that prices may breach $4,000 per ounce by mid-2026. Mounting recession concerns, heightened US tariffs, and deepening US-China trade tensions are expected to fuel a sustained rally in the yellow metal, the bank said in a recent note.
JP Morgan sees gold averaging $3,675 per ounce by the fourth quarter of 2025 and noted that prices could reach the $4,000 mark sooner if investor and central bank demand remains strong. Spot gold has already climbed 29% so far this year, touching an all-time high of $3,500 per ounce on April 22.
Goldman Sachs has also turned more bullish, recently raising its 2025 year-end forecast from $3,300 to $3,700 per ounce. In an extreme case, the bank said, gold could surge to $4,500 by the end of next year.
A key driver behind JP Morgan’s forecast is continued robust buying from investors and central banks. The bank expects net gold demand to average around 710 tonnes per quarter this year. “Underpinning our forecast for gold prices heading towards $4,000/oz next year is continued strong investor and central bank gold demand,” analysts wrote.
Still, JP Morgan flagged potential downside risks. Should central bank demand weaken, or if the US economy weathers tariff shocks better than expected, the Fed may adopt a more hawkish stance—possibly triggering rate hikes. “More materially bearish would be a scenario where US economic growth remains extremely resilient to tariffs, allowing the Fed to turn much more proactive in fighting inflation risks,” the bank warned.
Silver, meanwhile, may face near-term headwinds from soft industrial demand. But JP Morgan expects a rebound in the second half of 2025, with prices projected to climb toward $39 per ounce by year-end.
With geopolitical uncertainty and central bank policies in flux, gold’s trajectory will hinge on how demand shapes up and whether macroeconomic risks continue to intensify—or ease.
Tune In
Must Watch
advertisement
SOURCE :- TIMES OF INDIA
