JP Morgan Revises 2026 Gold Price Forecast Amid Weak Demand
JP Morgan lowers 2026 gold price forecast amid weak investor demand
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JP Morgan has reduced its 2026 gold price forecast to $5,243 per ounce from $5,708, citing weak investor demand. Despite this downgrade, the bank expects prices to rebound to $6,000 by the end of 2026 as demand from investors and central banks is anticipated to strengthen in the latter half of the year.
- 01JP Morgan's new forecast of $5,243 per ounce reflects a significant reduction due to diminished investor interest.
- 02The bank anticipates that gold prices will rise to $6,000 per ounce by the end of 2026, driven by a resurgence in demand.
- 03The downgrade follows a similar move by ANZ, which set its year-end target at $5,600 per ounce.
- 04Spot gold prices have dropped approximately 14% since the onset of the US-Iran war, contributing to current market pressures.
- 05Analysts expect that inflation concerns and higher interest rates will continue to impact gold prices in the near term.
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JP Morgan has lowered its average gold price forecast for 2026 to $5,243 per ounce, down from $5,708, due to a notable decline in investor demand. The bank's analysts noted that client interest has 'dried to a trickle,' leading to stagnant activity metrics in the gold market. Despite this downgrade, JP Morgan maintains a bullish outlook for the future, predicting that gold prices could reach $6,000 per ounce by the end of 2026 as demand is expected to pick up in the latter half of the year. This forecast aligns with expectations that investor and central bank demand will re-intensify after current economic uncertainties subside. The reduction in forecast comes alongside ANZ's decision to lower its year-end target for gold to $5,600, influenced by factors such as inflation expectations and a stronger U.S. dollar. Spot gold has experienced a 14% decline since the beginning of the US-Iran conflict, exacerbated by rising oil prices and ongoing inflation concerns, which have pressured market dynamics.
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The forecast revision may affect investment strategies and market dynamics for gold investors, impacting their portfolios and investment decisions.
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