Despite relatively stable trading across global commodity markets, major Wall Street institutions are forecasting a strong rally in gold prices. J.P. Morgan expects the precious metal to reach a record high of $4,500 per troy ounce by the end of 2026.

Gold Prices Hold Steady

As major international markets, including Shanghai and New York, opened, spot gold traded within a narrow range. Spot gold is currently priced at $4,155 per troy ounce, maintaining stable technical support compared with trading levels recorded late last week.

Economic Factors Supporting Higher Gold Prices

Analysts at leading investment firms, led by J.P. Morgan, point to several macroeconomic factors supporting gold's medium-term upward trend.

One of the key drivers is the release of upcoming U.S. employment data later this week. Expectations of weaker labor market figures have increased speculation that the U.S. Federal Reserve could implement additional interest rate cuts.

Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold, encouraging investors to shift toward safe-haven assets. At the same time, continued gold purchases by central banks and sovereign portfolio diversification continue to support the metal's long-term outlook.

J.P. Morgan Raises Gold Price Outlook

According to the latest research from J.P. Morgan Global Research, gold remains well positioned to benefit from ongoing monetary policy shifts.

The investment bank has set a revised price target of $4,500 per troy ounce by the end of 2026.

Although this forecast represents a 25% reduction from its previous target of $6,000 per ounce, reflecting softer short-term demand in certain retail markets, the revised projection would still mark a record nominal high for gold.

Market Outlook

Financial experts say weaker-than-expected U.S. employment data could put additional pressure on the U.S. Dollar Index and accelerate gold's upward momentum.

However, they note that a more hawkish stance from the U.S. Federal Reserve remains the primary risk to J.P. Morgan's projected timeline.