JPMorgan just turned cautious on gold in the short term. The bank cut its Q4 2026 forecast by roughly 25% to $4,500 per ounce, down from around $6,000. The recalibration follows weaker demand from key buying sectors.

This move signals fresh caution ahead, even as JPMorgan keeps its longer-term bullish thesis fully intact.

JPMorgan Slashed Its Gold Forecast 25%

A price forecast is an analyst’s projection of where an asset may trade over a defined future period. JPMorgan now projects an average gold price of $4,300 per ounce in the third quarter. Furthermore, it sees the metal rising to $4,500 in Q4.

The cut is significant in scale. The bank previously targeted roughly $6,000 per ounce by the fourth quarter. As a result, the new $4,500 target represents a roughly 25% reduction from prior expectations for the same period.

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The recalibration stems from softer demand. Purchasing power has weakened among gold’s major demand centers. Moreover, the metal has become more sensitive to shifts in real interest rates, capping the near-term price ceiling.

The bank described the situation as “range-bound”. As a result, traders should expect sideways price action before any second-half recovery takes hold.

Other institutions remain more bullish. Goldman Sachs sees $4,900 per ounce by the end of 2026, driven by sovereign demand and emerging-market central bank diversification.

Furthermore, UBS targets $5,200 over the next 12 months as markets reassess Fed policy and dollar pressure intensifies. Meanwhile, Morgan Stanley also eyes $5,200 in H2 2026, but warns that gold needs stronger ETF inflows first.

The precious metal is currently trading at $4,175, up 1.26% over the last 24 hours. However, it is now down 26% from its all-time high near $5,600 reached in January 2026, according to TradingView data.

Why JPMorgan’s Long-Term Bullish View Holds

Despite the cut, JPMorgan’s medium- to long-term view remains firmly positive. The bank pointed to two structural forces that could drive gold prices through 2027. Each factor supports demand well beyond the current short-term consolidation phase across global markets.

• First, central banks worldwide continue accumulating gold reserves at an increased pace. Furthermore, physical demand for the precious metal is expected to keep strengthening over the coming months. Both trends provide a durable floor under prices across the entire outlook.
• Second, institutional investors continue to allocate tangible portions of their portfolios to gold for hedging purposes. Moreover, that pattern shows no sign of reversing. As a result, JPMorgan expects gold to retain its role as both a safe-haven asset and an alternative reserve currency.

The JPMorgan forecast also carries implications for crypto markets. Gold and Bitcoin have traded as competing macro hedges throughout 2025 and into 2026. As a result, a “range-bound” gold price could potentially shift some institutional capital toward the crypto market in the short term.

However, the bank’s long-term bullish stance means gold will not lose its importance as a store of value any time soon. The near-term caution simply reflects a temporary pause rather than a structural break in the broader multi-year uptrend.

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Source: BeInCrypto