Gold prices experienced significant volatility last week following President Trump’s nomination of Kevin Warsh to lead the Federal Reserve, but JPMorgan analysts are urging investors to maintain confidence in the precious metal. Despite the dramatic sell-off on Friday and continued turbulence on Monday, the investment bank has set an ambitious gold price target of $6,300 per ounce by the end of 2026.
The forecast represents approximately a 34% increase from gold’s late Monday price of around $4,700 per ounce, according to JPMorgan’s Gregory Shearer. The sharp decline followed a reassessment of the debasement trade, which had been a primary driver pushing gold to record highs over the past year.
Why JPMorgan Remains Bullish on Gold Despite Recent Volatility
According to Shearer, the recent price correction should not concern long-term investors. The analyst emphasized that demand for the yellow metal remains robust and has exceeded his team’s initial expectations, despite the near-term market turbulence.
“Even with the recent near-term volatility, we believe longer-term rally momentum will remain intact,” Shearer wrote in a research note. He added that continuing diversification trends will drive gold to outperform other assets in the coming months.
Central Bank Demand Remains Strong
The primary support for JPMorgan’s optimistic gold price outlook stems from persistent central bank purchasing. Shearer indicated that central bank demand will continue its upward trajectory throughout 2026, providing a solid foundation for price appreciation.
Additionally, the analyst predicts that investor appetite for gold will remain strong even after Friday’s shocking sell-off. The bank forecasts that combined demand from central banks and investor diversification strategies will ultimately propel gold prices to the $6,300 per ounce level by year-end.
Silver Faces Different Outlook
In contrast to its bullish stance on gold, JPMorgan expressed more caution regarding silver. Shearer noted that his team finds it increasingly difficult to assess the factors driving silver prices, suggesting that gold will likely benefit as silver undergoes a correction in the coming months.
The analysts maintain that gold demand is creating stress on inelastic supply, pushing prices higher as the market attempts to reach equilibrium. This supply-demand imbalance represents a fundamental driver that should persist regardless of short-term volatility.
Gold Remains Top Portfolio Hedge Despite Fed Leadership Change
JPMorgan’s analysis suggests that gold will reach record highs in 2026 regardless of the monetary policies pursued under Warsh’s potential Fed leadership. The investment bank views gold as maintaining its status as the most effective safe haven asset and portfolio hedge, even amid dramatic macroeconomic shifts.
However, the bank expressed greater caution about re-engaging with silver investments in the near term. The analysts want to ensure that recent speculative excess has been fully eliminated from silver prices before recommending increased exposure.
The team emphasized their conviction in the bullish case for gold, noting that multiple demand factors support higher prices. These include ongoing geopolitical uncertainties, currency diversification efforts, and sustained institutional buying.
Market participants will continue monitoring Federal Reserve developments and central bank purchasing patterns in the coming weeks to gauge whether JPMorgan’s ambitious price target remains achievable. The extent of any further volatility related to monetary policy expectations remains uncertain as investors digest the implications of potential Fed leadership changes.
