JP Morgan said late on Sunday that it expects demand from central banks and investors to push gold prices to $6,300 per ounce by the end of the year, Reuters reported.
Gold extended its recent decline on Monday, trading at $4,677.17 per ounce as of 0450 GMT, after falling more than 5% earlier in the session to reach its lowest level in over two weeks. The metal had reached a record high of $5,594.82 on Thursday.
“We remain firmly bullishly convicted in gold over the medium-term on the back of a clean, structural, continued diversification trend that has further to run amid a still well-entrenched regime of real asset outperformance vs paper assets,” the brokerage said in a note.
JP Morgan now forecasts central-bank gold purchases at 800 tons in 2026, citing an ongoing, unexhausted trend of reserve diversification.
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Silver, meanwhile, has been trading around $80 an ounce since late December, but the drivers behind its rally have become harder to identify, prompting a more cautious outlook, JP Morgan said.
Spot silver fell over 6% to $78.90 an ounce on Monday, after hitting a record high of $121.64 on Thursday and a near one-month low on Friday.
“Without central banks as structural dip buyers as in gold, there remains the risk for a further move back higher in the gold-to-silver ratio in the coming weeks,” the brokerage added.
“We still do see a higher floor for silver on average (around $75-$80/oz) for now vs our previous expectations as, even after overshooting in its catch-up to gold, silver is unlikely to fully relinquish its gains.”
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