JPMorgan said late Sunday that it expects demand from central banks and investors to push gold prices to $6,300 an ounce by the end of the year.
Gold continued its decline on Monday, hitting its lowest level in more than two weeks. The precious metal had reached a record high of $5,594.82 on Thursday.
He explained in a note that we remain fully convinced of our optimism towards gold in the medium term, based on the clear, structural and sustained movement in light of the outstanding performance of physical assets versus paper assets.
JPMorgan now expects central bank gold purchases to reach 800 tons in 2026, attributing this to the ongoing trend of diversifying reserves.
As for silver, whose prices also plummeted after reaching an all-time high of $121.64 on Thursday, it has become difficult to pinpoint the driving factors, increasing JPMorgan's caution.
JPMorgan said, “We still see favorable opportunities for silver on average (around $75-80 an ounce) at the moment compared to our previous expectations. After outperforming gold, it is unlikely that silver will completely relinquish its gains.”
