Comprehensive Predictions for Gold Prices from JPMorgan

Investors' Search for a Safe Haven

The US-based investment bank JPMorgan predicts that gold prices could increase by 110% within the next three years. This forecast stems from investors seeking a safe haven against fluctuations in the stock market. The analyst team led by Nikolaos Panigirtzoglou at JPMorgan stated that investors view gold purchases as a long-term strategy.

Recent Value Loss and Demand Dynamics

The recent sharp loss in gold prices is attributed not to individual investors but rather to algorithmic funds realizing profits. However, it is emphasized that the demand for gold ETFs is seen more as a long-term strategy aimed at increasing portfolio diversification rather than short-term price fluctuations. Currently, the share of gold in the portfolios of non-bank investors corresponds to 2.6% of their total assets.

Investor Preferences and Price Predictions

If investors continue to prefer gold over long-term bonds, this ratio could rise to 4.6%, and this situation could potentially double gold prices. JPMorgan analysts believe that these dynamics will gain increasing momentum in an environment of ongoing uncertainty in the markets.

Growth Expectations

According to strategists’ forecasts, the annual growth of stocks, bonds, and cash assets will exceed 7 trillion dollars within the next three years. Additionally, it is stated that the weight of stocks in the total portfolio could reach 54.6%, similar to the dot-com bubble period.

Goldman Sachs Opinion

On the other hand, Goldman Sachs maintains its target price of 4,900 dollars per ounce by the end of 2026. The bank notes that ongoing demand from central banks and institutional investors will support gold prices upward.