Gold prices fell sharply on Friday, but JPMorgan remains optimistic about the metal’s long-term outlook.
The bank predicts gold could climb to $6,300 per ounce by the end of 2026, despite recent market turbulence. Analyst Gregory Shearer said the latest sell-off does not change the broader bullish case.
Gold dropped after President Trump nominated Kevin Warsh as the next Federal Reserve chair, triggering volatility across precious metals. While prices remained unstable into Monday, JPMorgan described the move as a temporary setback rather than a trend reversal.
JPMorgan raised its 2026 price target to $6,300, representing a potential 34% increase from current levels near $4,700.
Shearer said recent weakness was driven by a reassessment of inflation and currency-debasement trades, which had previously pushed gold to record highs. However, he argued that underlying demand remains strong.
The bank pointed to continued buying by central banks and ongoing investor diversification as key drivers that should support higher prices. Shearer said both factors are expected to intensify in 2026.
Even if short-term positioning unwinds further, JPMorgan believes gold will continue to benefit from its role as a portfolio hedge and safe-haven asset.
The bank is more cautious on silver, noting that its price drivers have become harder to assess and that gold may outperform as silver undergoes a correction.
Overall, JPMorgan said strong demand and limited supply are likely to push gold to new highs, regardless of shifts in Federal Reserve policy.