Commodities February 2, 2026

JP Morgan Predicts Gold Could Reach $6,300 an Ounce by Year-End on Strong Reserve and Investor Demand

Brokerage points to continued central-bank buying and investor interest as drivers, while silver shows greater short-term volatility

By Caleb Monroe
JP Morgan Predicts Gold Could Reach $6,300 an Ounce by Year-End on Strong Reserve and Investor Demand

JP Morgan said it expects strong central-bank purchases and investor demand to push gold to $6,300 per ounce by the end of the year. The bank reaffirmed a medium-term bullish stance on gold, citing an ongoing diversification trend in reserves, and forecast central-bank gold purchases of 800 tonnes in 2026. Silver has shown greater short-term unpredictability after sharp moves, prompting more cautious guidance from the bank.

Key Points

  • JP Morgan forecasts gold at $6,300 per ounce by year-end, citing central-bank and investor demand.
  • The bank expects central-bank gold purchases to reach 800 tonnes in 2026, reflecting a continued trend of reserve diversification.
  • Silver has been more volatile - after peaking at $121.64, it fell to $78.90 and the drivers of its rally are harder to quantify, leading JP Morgan to adopt a more cautious view.

JP Morgan late on Sunday set a year-end target of $6,300 per ounce for gold, attributing the expected rise to demand from central banks and investors. The bank framed its outlook within a longer-term shift in reserve composition and investor appetites for real assets.

On Monday, gold continued to weaken, trading at $4,677.17 per ounce as of 0450 GMT, after an earlier intra-session drop exceeding 5% that took the metal to its lowest level in more than two weeks. The metal had reached an all-time high of $5,594.82 on Thursday prior to the recent pullback.

"We remain firmly bullishly convicted in gold over the medium-term on the back of a clean, structural, continued diversification trend that has further to run amid a still well-entrenched regime of real asset outperformance vs paper assets," the brokerage said in a note.

As part of its outlook, JP Morgan raised its forecast for central-bank gold purchases to 800 tonnes in 2026, citing what it described as an ongoing, unexhausted trend of reserve diversification. That central-bank demand is a central element in the bank's case for higher gold prices over time.

Silver's recent behavior has been more volatile and harder to attribute to single drivers, the bank warned. With silver near $80 an ounce since late December, JP Morgan said the forces supporting the rally have become more difficult to pinpoint and quantify, prompting a more cautious stance on the metal.

Spot silver fell by more than 6% on Monday to $78.90 per ounce. The white metal had posted a record high of $121.64 on Thursday and subsequently moved down to a near one-month low on Friday.

JP Morgan highlighted a structural difference between the two metals: central banks act as persistent, structural dip buyers for gold, a support that is absent for silver. Because of that distinction, the bank noted the possibility that the gold-to-silver ratio could move higher again in the coming weeks.

"We still do see a higher floor for silver on average (around $75-$80/oz) for now vs our previous expectations as, even after overshooting in its catch-up to gold, silver is unlikely to fully relinquish its gains," JP Morgan said.

The brokerage's outlook underscores a strong conviction in the broad demand picture for gold, while flagging greater near-term uncertainty for silver due to the absence of the same structural buyers and recent sharp price swings.

Risks

  • Short-term price risk: gold recently dropped more than 5% in a session and traded at $4,677.17 as of 0450 GMT, demonstrating acute near-term volatility that could challenge timing of the bank's year-end target.
  • Uncertain drivers for silver: JP Morgan noted that with silver harder to attribute to specific demand drivers and without central-bank structural buying, there is risk of the gold-to-silver ratio moving higher in the coming weeks.
  • Volatility following record highs: both metals recorded recent peaks - gold at $5,594.82 and silver at $121.64 - followed by rapid declines, creating uncertainty for investors and market participants that rely on price stability.

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