Analysts at JP Morgan Private Bank predict significant growth in gold prices in the coming years. According to their estimates, by 2026 the price of an ounce of gold could exceed the $5000 mark, reaching levels of $5200–5300 by the end of the year. This indicates a potential increase of over 25% from current prices of the precious metal.
This is reported by Finway
Central bank gold purchases stimulate the market
In recent years, the active buying of gold by central banks has become a key factor in driving up its value. These institutions, particularly in emerging market countries, seek to secure their currency reserves and diversify their assets, thereby increasing demand for the precious metal.
In October, gold prices reached an all-time high of $4380 per ounce, after which they slightly decreased. However, since the beginning of the year, the price of gold has risen by more than 50%.
“Gold still represents a relatively small portion of currency reserves for many central banks, especially in emerging market countries,” explained Wolf.
The long-term trend remains
Despite the significant price increase, JP Morgan experts are convinced that central banks will not halt their gold purchases, although the pace of buying may slow down. Strong demand from financial institutions will continue to be the main driver of the gold market in the coming years.