JPMorgan stated demand for gold from key sectors wouldn’t be as sturdy because it had anticipated, limiting the rise in gold costs this yr to $4 300/oz within the third quarter and $4 500/oz within the fourth quarter.
The financial institution stated the dangers to its forecast skew to the draw back, given doable early rate of interest hikes by the U.S. Federal Reserve if information have been to come back in sizzling over the stability of the summer season.
As not too long ago as June 9, JPMorgan had stated it anticipated gold costs to rise to $6,000 by yr finish.
On Friday, spot gold was up 1.3% at $4 174.21 per ounce at 1241 GMT, after hitting its highest since June 23. Bullion was up over 2% for the week to this point.
Excessive rates of interest would weigh on non-yielding bullion as traders flip to belongings that supply higher returns.
The financial institution retained a long-term bullish view, saying gold might prolong positive factors in 2027 as central financial institution purchases and bodily demand strengthen amid enduring structural drivers of accumulation.
It additionally forecast silver costs to common $60 to $65 per ounce over its outlook horizon because the market strikes away from final yr’s tight bodily situations and the gold-to-silver ratio normalizes.
Platinum costs are anticipated to common about $1 800 per ounce by the top of 2026 and rise to round $1 950 per ounce by the top of 2027, supported by supply-side fundamentals in South Africa.
The financial institution forecasts palladium costs at $1 350 per ounce by end-2026, and expects it to common round $1 300 in 2027, in step with broader weak spot throughout the dear metals advanced.
