JPMorgan Revises Gold Price Projection to $6,300 in 2026 Amid Strong Institutional Demand

The American financial institution has significantly raised its target for the price of gold in 2026, pointing to $6,300 per ounce. This revision represents a potential gain of 34% compared to current levels near $4,700, signaling analysts’ confidence in the metal’s appreciation trajectory despite recent market fluctuations. According to PANews, JPMorgan’s experts dismiss significant impacts from changes in Federal Reserve leadership, maintaining their optimism regarding gold’s performance in the coming years.

Continued Central Bank Demand Supports Gold Appreciation

Persistent gold purchases by central institutions from various countries remain the main driver of this positive trend. Central banks continue to accumulate gold reserves as a diversification mechanism and protection against macroeconomic uncertainties. This behavior, combined with private investors’ pursuit of wealth security, creates a scenario where demand for gold shows signs of ongoing acceleration.

Limited Supply Pressures Gold Price Toward a New Market Equilibrium

JPMorgan highlights a critical factor often underestimated: the inelasticity of gold supply. Unlike many assets, gold production responds slowly to price changes, creating a structural imbalance in the market. As demand for gold increases—especially from institutional actors—rigid supply exerts upward pressure on prices. This market mechanism suggests that the appreciation of the metal is not just a speculative trend but a rebalancing to a new equilibrium point between supply and demand.

Gold as a Defensive Asset: Structural Protection

Regardless of the direction global monetary policy may take, JPMorgan reiterates that gold maintains its fundamental role as a portfolio protector. In scenarios of high inflation, confidence crises, or currency volatility, gold’s price has historically demonstrated robust defensive properties. This structural characteristic of the precious metal sets it apart from traditional financial assets, ensuring its relevance in resource allocation strategies.

Silver in the Background: A More Cautious Outlook

In contrast to the optimism expressed regarding gold, the bank adopts a more reserved stance on short-term prospects for silver. While the yellow precious metal benefits from strong institutional demand and recognition as a store of value, silver faces a different market dynamic, with industrial applications limiting its behavior as a pure defensive asset.