Gold Prices Projected to Soar Past $5,000 by Mid-2027

J.P. Morgan's strategists remain bullish on gold, predicting it will reach $4,500 per ounce by the end of 2026 and $5,000 by mid-2027.

The bank cites several key factors driving this outlook, including falling or capped real yields, a softer US dollar, central-bank demand, and concerns over fiscal sustainability.

The direction of real yields is particularly important, as gold's attractiveness is sensitive to the returns available from interest-bearing assets. When real yields fall, the opportunity cost of holding gold declines, supporting demand.

Central banks have emerged as a significant source of structural support for gold prices, with China's recent purchases being a notable example. The People's Bank of China bought 20 tonnes of gold in July, its largest monthly purchase since October 2023.