Gold Price to Reach $5,000/oz by End of 2026, JP Morgan Predicts

Strong Demand from Central Banks and Investors

Gold prices are expected to continue their upward trajectory, with JP Morgan forecasting that prices will reach $5,000/oz by the end of 2026 ¹

. This prediction is backed by sustained demand from both central banks and individual investors. In 2025, gold prices surged by 64%, marking their best annual performance since 1979 ³

Source 3

https://internasional.kontan.co.id/news/update-selasa-61-harga-emas-kian-dekati-rekor-tertinggi-dipicu-risiko-geopolitik

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Factors Driving Gold Prices Higher

Several key factors are driving the demand for gold:

1. Lower US Interest Rates: Expectations of lower US interest rates make gold more attractive as an investment, as it is a non-yielding asset that benefits from lower opportunity costs ²
   Source 2

   https://internasional.kontan.co.id/news/morgan-stanley-prediksi-harga-emas-tembus-us4800-per-ons-perak-masih-menarik
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2. Geopolitical Tensions: Rising geopolitical tensions, such as those seen in Venezuela, drive investors towards safe-haven assets like gold ³
   Source 3

   https://internasional.kontan.co.id/news/update-selasa-61-harga-emas-kian-dekati-rekor-tertinggi-dipicu-risiko-geopolitik
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3. Central Bank Purchases: Central banks continue to increase their gold reserves, with JP Morgan estimating around 755 tons of gold purchases in 2026, although slightly lower than the over 1,000 tons seen in recent years ¹
   Source 1

   https://finansial.bisnis.com/read/20260106/89/1941841/prediksi-emas-tahun-2026-oleh-jp-morgan-buy-or-not
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4. Investor Demand: Investor demand for gold has also been robust, with significant inflows into gold ETFs and other investment products ¹
   Source 1

   https://finansial.bisnis.com/read/20260106/89/1941841/prediksi-emas-tahun-2026-oleh-jp-morgan-buy-or-not
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Market Performance and Future Outlook

As of early 2026, gold prices have continued to rise, reaching near-record levels. The spot price has seen a 0.3-0.4% increase, settling at around $4,461.09 per ounce ³

. This follows a significant jump of nearly 3% in the previous session. The upward trend is expected to continue, driven by the factors mentioned above.

Conclusion

The outlook for gold remains positive, with JP Morgan's prediction of reaching $5,000/oz by the end of 2026 appearing increasingly plausible. The combination of central bank purchases, investor demand, and favorable macroeconomic conditions creates a strong foundation for continued growth in gold prices.