Wall Street Sees Gold Soar to $5,000, Slashes Silver Forecasts
The largest Wall Street institutions have set their sights on gold reaching $5,000 per ounce by the end of 2027, while reducing their silver forecasts.
Goldman Sachs and J.P. Morgan are among the major players that expect gold to hit this price target, with Goldman's strategist Lina Thomas stating that Federal Reserve rate increases will slow the rally but not derail it.
The driving force behind these predictions is the accumulation of gold by central banks as a reserve diversification tool, with purchases running near 91 tonnes per month against a pre-2022 average of 17 tonnes. This demand is structurally independent of the industrial cycle.
J.P. Morgan cut its silver forecast by 26%, from an earlier high estimate of $85.80/oz to roughly $63.90/oz, citing three reasons: supply tightness easing as physical markets unwind, reduced retail investor demand, and broader demand normalisation across industrial buyers.