Spot gold (XAUUSD) has set another all-time high of $3,576 per troy ounce after securing a series of record highs during the past week. The upside has been driven by rising odds of a rate cut later this month amid a cooling labor market. Gold becomes more attractive with lower rates because it doesn’t pay out interest. In other words, the lower the return on interest-bearing assets, the smaller the opportunity cost of holding gold.
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JPMorgan expects the precious metal to finish the year at $3,675, implying upside of 2.7% from current levels. The bank’s forecast for 2026 calls for even more gains.
Faltering Fed Independence Could Boost Gold, Says JPMorgan
JPMorgan expects gold to reach $4,000 by mid-2026 and $4,250 by the end of 2026, especially if the Fed’s independence diminishes.
“We believe any potential weakening of the US Federal Reserve’s independence could have significant implications for long-term gold prices,” wrote JPMorgan analyst Patrick Jones on Wednesday. The Fed’s independence has been put to the test as President Trump attempts to fire Fed Governor Lisa Cook for alleged mortgage fraud. Cook responded by filing a lawsuit, arguing that Trump has no legal grounds to remove her from her position.
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