JPMorgan analyst isn’t worried about gold’s recent plunge — predicts something even better
Experts across the board have been saying for months now that investing in precious metals like gold is the safest bet in these uncertain times. However, last week proved that not even that can be entirely reliable. Gold prices plunged last week after US President Donald Trump announced that Kevin Warsh would be the head of the Federal Reserve. Despite the plunge, the experts at JPMorgan believe its price will soar by the end of the year.
JPMorgan recently updated its prediction for the price of gold in 2026 to stand at $6,300 per ounce. This is a lot higher than their previously set target of $4,700. Naturally, this prediction baffled a lot of people, some of whom might be hurting after the price plummeted to unexpected lows. However, the bank’s top analyst, Gregory Shearer, believes that it was just a bump in the road to soaring gold prices.
The price of gold saw record highs last year, and Shearer believes that the demand for the metal still exceeded his team’s expectations, as per a Business Insider report. He believes that investors are increasingly looking to diversify their assets, which has kept gold highly sought after despite last week’s events. "Even with the recent near-term volatility, we believe longer-term rally momentum will remain intact," he wrote.
"Even with the likelihood of some positioning washing out over this pullback, as gold remains a dynamic, multi-faceted portfolio hedge, we now forecast enough demand from central banks and investor diversification this year to ultimately push gold prices to $6,300/oz,” Shearer added. However, he was uncertain over how silver’s price would turn out as it plunged a lot steeper than gold.
"We continue to have the greatest conviction in our bullish view on gold from here, and are more cautious on re-engaging in silver in the near-term until it becomes clearer that some of the recent froth in prices has been fully shaken out," the analyst explained. Shearer’s statements echo his sentiments from 2025, when he said that the demand for gold would be elevated throughout 2026 as per a JPMorgan report.
“While gold’s share of total investor AUM has grown by around one percentage point over the last two years as prices and demand have increased, we still see the potential for this share to rise toward 4–5% over the coming years,” he had said, before adding, “We believe central bank demand will remain elevated next year and have been encouraged by strong buying in the third quarter of 2025, even with much higher gold prices.”
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