Global financial institution JP Morgan predicts gold prices will surpass $4,000 per ounce next year due to increased recession probabilities and a boost in US tariffs. The bank’s forecast puts average prices at $3,675/oz by the fourth quarter of 2025, with risks favoring an earlier surge past this estimate if demand exceeds expectations.
JP Morgan cites strong investor and central bank gold demand, averaging around 710 tonnes a quarter on net, as the driving force behind its forecast. This demand has contributed to gold’s 29% year-to-date gain and 28 record highs this year.
However, analysts also highlight a bearish scenario in which unexpected drops in central bank demand or resilient US economic growth could prompt the Fed to fight inflation more aggressively, leading to higher prices before actual inflation concerns arise.
In contrast, silver is expected to face headwinds in the near term due to industrial demand uncertainty. A “catch-up window” will open over the second half of 2025, with prices set to rise towards $39/oz by year-end.
Source: https://finance.yahoo.com/news/jp-morgan-see-gold-prices-192717669.html