Gold prices are predicted to reach $4,000.

In a report cited by Kitco News on May 7th, JP Morgan predicted that the price of gold could reach $4,000 per ounce within the next 12 months, assuming the US and global economies maintain their growth momentum.

This forecast comes amid significant pressure and uncertainty in global financial markets, which continues to see gold as a strategic hedge.

Grace Peters, Global Head of Investment Strategy at JP Morgan, noted that asset diversification strategies, particularly geographically and in currencies, are becoming increasingly important in risk management.

According to her, even though the S&P 500 index is currently only 3-4% away from its previous peak, geopolitical fluctuations and monetary policy remain factors that could lead investors to seek refuge in gold.

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

A notable point in Ms. Peters' assessment is JP Morgan's raising of its gold price target from $3,500 to $4,000 per ounce. The main drivers for this bullish scenario are strong buying demand from central banks in emerging markets, along with capital inflows into ETFs. In addition, demand from the jewelry and technology sectors is expected to remain stable and may increase slightly in the near future.

However, in the short term, gold prices are still under pressure to correct. In the afternoon session of May 8th, the spot gold price briefly fell below $3,300 per ounce, before closing at $3,308.24, down 1.67% for the day.

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