Gold to Reach US$6,000 by 2029: JPMorgan

JPMorgan has strengthened its optimistic outlook on gold, projecting that prices could climb to US$6,000/oz by the end of President Donald Trump's current term in 2029, an 80% increase from current levels.

According to the bank’s analysts, such a surge could be triggered by a relatively minor shift in investment away from US assets given the current macroeconomic conditions. They estimate that if just 0.5% of foreign-held US assets were redirected into gold, it could deliver annual returns of 18% and push gold prices to the US$6,000 mark.

This projection is based on a potential inflow of US$273.6 billion, or roughly 2,500mt, into the gold market over four years. While this would only represent about 3% of total global gold holdings, JPMorgan emphasized that even modest increases in demand can have a substantial impact on prices, given the limited growth in gold supply. “This hypothetical situation highlights why we maintain a long-term bullish view on gold and believe its price still has room to grow,” the analysts wrote.

Gold has already surged nearly 28% this year, reaching multiple record highs, including surpassing US$3,500/oz last month. Over the past three years, the metal’s price has doubled, reflecting its rising status as a safe-haven asset amid global instability.

JPMorgan attributes the rally to prolonged geopolitical tensions and economic volatility, intensified by Trump’s presidency and the launch of an aggressive trade war, which has shaken investor confidence in the US dollar.

The bank also pointed to the Trump administration’s push for greater burden sharing from other countries benefiting from the dollar’s reserve currency status as a factor causing foreign investors to reassess their positions, further supporting the bullish case for gold.