Sharing on Bloomberg, Ms. Grace Peters - Director of Global Investment Strategy of JP Morgan said that regional and monetary diversification is a key factor in the current market context.
She also said that JP Morgan had set a gold price target of 3,500 USD/ounce at the beginning of the year, but this level has now been exceeded, so the bank has raised the forecast to over 4,000 USD/ounce within the next year.
One of the main drivers of gold price increases is the increase in gold reserves by central banks in emerging markets, narrowing the gap with central banks in developed countries.
In addition, demand for gold from ETFs and technology and jewelry sectors is also expected to increase next year if GDP continues to maintain growth.
Peters assessed that the outlook for US stocks remains positive thanks to support policies from the US Federal Reserve (FED). JP Morgan forecasts the Fed to cut interest rates twice this year and twice in 2026, bringing interest rates back to around 3.5%. However, inflationary pressures are still a factor that could limit the Fed's more drastic easing.
Regarding the global investment environment, Peters believes that, besides the US, the European market also has potential thanks to the regional investment allocation strategy. She said JP Morgan is rebuilding investment targets for the next 12 months, with a targeted deliveralization strategy that is both risky but still has a protective factor like gold.
Not only Ms. Grace Peters, many experts and financial institutions have also recently given a positive assessment of the precious metal outlook.
Bank of America predicts gold could hit $4,000 an ounce by the second half of this year if investment demand increases by 18% and the jewelry market remains stable. Previously, the $3,500 mark was forecast for 2027 but was surpassed in less than a month.
According to this bank, the factors supporting the new increase in gold are geopolitical instability due to global trade and concerns about the US fiscal situation. They believe that the USD is weakening in this context and gold could become a less risky asset than US government bonds.
