J.P. Morgan downgrades 2026 gold price forecast but still maintains bullish expectations.

JPMorgan Chase has lowered its average gold price forecast for 2026 from $5,708 per ounce to $5,243, citing waning investor interest in the precious metal and softening short-term demand for gold. Analysts at the bank noted in a report released on Sunday that this quiet period is reflected in stagnant trading activity and demand indicators. The total open interest and trading volume of COMEX gold futures have been consistently low, and hedge funds' net futures positions have been hovering at low levels, while ETF fund inflows have been subdued. Despite the downward revision of its forecast, the bank still maintains a bullish outlook and expects gold prices to climb to $6,000 per ounce by the end of 2026 as demand strengthens in the second half of the year. The bank stated, "We maintain a bullish outlook in the medium term and predict that demand for gold from investors and central banks will strengthen again in the second half of 2026, once uncertainties surrounding energy and inflation dissipate." Earlier, ANZ Bank also lowered its year-end gold target price to $5,600 last Friday, citing inflation expectations, rising yields, and a potentially stronger US dollar as possible pressures on gold prices.