JPMorgan Private Bank: Gold prices are expected to break through $5,000 by the end of next year

JPMorgan Private Bank believes that the upward momentum of gold could push prices above $5,000 per ounce next year, primarily driven by central bank purchases from emerging market economies. Alex Wolf, the bank's global macro and fixed income strategy head, stated that gold prices could reach $5,200 to $5,300 by the end of 2026, which would be more than 25% higher than the current trading price of the metal. The analyst noted that for many central banks, especially those in emerging markets, the overall percentage of gold in their "foreign exchange reserves remains relatively small." He pointed out that even if the pace of purchases may slow due to rising prices, "we still see them continuing to accumulate." Central banks have been a key driver of rising gold prices, with significant purchases from China, Poland, Turkey, and Kazakhstan, and many emerging market economies have substantial cash flows that need to be reinvested