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Gold Prices Today: Global investment banking firm JP Morgan has reaffirmed its bullish outlook on gold, citing it as the most reliable hedge against rising economic risks in 2025 and 2026. The bank’s latest report highlights stagflation, recession, currency debasement, and uncertainties in U.S. policy as key drivers expected to fuel gold’s upward momentum. “For investors, we think gold remains one of the most optimal hedges for the unique combination of stagflation, recession, debasement and US policy risks facing markets in 2025 and 2026,” the report said.
Strong Momentum and Demand Fuel Gold’s Rise
The report pointed to the strong momentum in gold prices seen in the first quarter of 2025 as an indication of growing investor confidence. JP Morgan estimated that net gold demand from investors and central banks would average around 710 tonnes per quarter in 2025, significantly higher than the 350-tonne threshold required to maintain price stability.
According to the bank, a 100-tonne increase in quarterly demand could raise gold prices by approximately 2 percent. JP Morgan expects central banks to purchase nearly 900 tonnes of gold this year, supported by sustained interest from exchange-traded funds (ETFs) and Chinese buyers.
Trade Tensions and Tariffs Intensify Economic Concerns
JP Morgan identified rising U.S. tariffs and worsening trade tensions with China as key contributors to increasing global economic strain. The bank noted signs of stagflation—defined by high inflation and sluggish economic growth—as a pressing concern. “The macro environment remains ripe for both sustained elevated levels of purchases by central banks (900 tonnes forecasted in 2025) as well as a further expansion in investor holdings, particularly from ETFs and China,” the report said.
Gold Price Forecast Raised Sharply
The bank raised its gold price forecast, projecting an average of USD 3,675 per ounce by the fourth quarter of 2025, up from current levels of around USD 3,400. JP Morgan further expects gold to cross USD 4,000 per ounce by the second quarter of 2026. “Tariff-driven recession and stagflation risks are forecasted to continue to supercharge gold’s structural bull run,” it stated.
The bank concluded that if gold demand exceeds projections, prices could rise faster than expected, reinforcing gold’s role as a dependable hedge amid mounting global uncertainty.
(With Inputs From ANI)
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