Gold price forecast to hit $4,000

In a report cited by Kitco News on May 7, JP Morgan predicted that gold prices could reach $4,000/ounce within the next 12 months, with the US and global economies maintaining growth momentum.

This forecast was made in the context of global financial markets being under a lot of pressure and instability, causing gold to continue to be seen as a strategic defense tool.

Ms. Grace Peters, Global Head of Investment Strategy at JP Morgan, commented that asset diversification strategies, especially in terms of geography and currency, are becoming increasingly important in risk management.

According to her, although the S&P 500 index is now only 3-4% away from its old peak, geopolitical fluctuations and monetary policy are still factors that can make investors seek gold as a safe haven.

JP Morgan also predicts the Fed will cut rates twice this year and twice more by 2026, bringing the final rate to around 3.5%. If this happens, the US dollar could weaken, creating conditions for gold prices to continue to rise.

The highlight of Ms. Peters’s assessment is that JP Morgan has raised its gold price target from $3,500 to $4,000 an ounce. The main drivers of this bullish scenario are strong buying demand from central banks in emerging markets, along with capital flows into ETFs. In addition, demand from the jewelry and technology sectors is also expected to remain stable and may increase slightly in the near term.

However, in the short term, gold prices are still under pressure to adjust. In the afternoon session on May 8, spot gold prices fell below $3,300/ounce, before closing at $3,308.24, down 1.67% on the day.

Nevertheless, the long-term outlook provided by JP Morgan continues to reinforce gold's position as an essential part of a diversified investment portfolio, especially during the current volatile period of the global economy.

Source: https://baonghean.vn/du-bao-gia-vang-co-the-cham-moc-4-000-usd-10296903.html