Gold prices, tracked by the XAU/USD index, are trading at $4,300 after recovering from a recent low of $4,029. The rebound followed the official signing of a US-Iran peace deal on June 19 in Switzerland. In a recent note, investment bank JP Morgan stated that gold prices could potentially reach $6,000 per ounce by the end of 2026, representing a significant projected increase from current levels.
The XAU/USD index is trading at $4,300 after plunging to $4,029 last week. News of a US-Iran peace deal, officially signed on June 19 in Switzerland, pulled prices back higher.
In a recent note, JP Morgan analysts wrote that gold prices could reach $6,000 an ounce by the end of 2026. This forecast suggests a nearly 40% surge from current values within the next six months.
Greg Shearer, Head of Base & Precious Metals at the bank, acknowledged the recent dip but predicted a surge post-deal. “Gold is stuck in a bit of a technical no-man’s land,” he stated, noting it trades between key moving averages.
Shearer added that gold is currently “on the back burner for most investors.” He cited concerns that the Federal Reserve might respond to energy-driven inflation with interest rate hikes.
The analyst predicted prices are on their way to the $6,000 mark by year-end. “These themes are on hold until more clarity arrives around a resolution of the Iran conflict,” he explained, noting it removes tail risks for energy and inflation.
An investment of $1,000 could therefore turn into $1,400 if the forecast proves accurate. JP Morgan has maintained a bullish stance on gold since 2022, with previous estimates reportedly proving correct.
Central banks’ accumulation of precious metals could further support prices after the geopolitical settlement. Oil prices trading around $80 per barrel have also provided market relief.
