- JP Morgan predicts the XAU/USD index, tracking Gold, could reach $6,000 per ounce by the end of 2026.
- Gold recently plunged to $4,029 but rebounded to $4,300 following news of a US-Iran peace deal, which was officially signed on June 19.
- JP Morgan analyst JPMorgan.com/insights/global-research/commodities/gold-prices”>Greg Shearer noted gold is currently stuck between key technical levels, with investor focus shifting to potential Federal Reserve rate hikes.
Following the formal signing of a US-Iran peace deal in Switzerland on June 19, JP Morgan has issued a bullish forecast, suggesting gold prices could surge to $6,000 per ounce by the end of 2026, according to a recent analyst note. The XAU/USD index has already recovered from a recent low of $4,029, now trading around $4,300 as geopolitical tensions ease. Consequently, a $1,000 investment could potentially yield $1,400 if this aggressive price target is met.
However, the near-term technical picture appears less certain. “Gold is stuck in a bit of a technical no-man’s land. Trudging above the 200-day moving average around $4,340/oz and capped for now below the 50-day moving average at $4,730/oz,” said Greg Shearer, Head of Base & Precious Metals at JP Morgan. He added that “gold is on the back burner for most investors at the moment” amid concerns the Fed may raise rates to combat inflation.
The bank’s prediction hinges on the resolution of the Iran conflict removing tail risks for energy prices and inflation. JP Morgan has maintained a consistently bullish stance on gold since 2022, and central bank accumulation of the metal could further support prices. Meanwhile, oil trading around $80 per barrel provides additional market stability following the peace agreement.
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