JPMorgan: Central Banks and Investors Drive Gold Prices Higher

JPMorgan has cut its average gold price forecast for 2026 amid slowing investor demand in the short term. However, the US investment bank remains bullish on the precious metal, predicting prices could still reach $6,000 per ounce by end-2026.

In its latest research note cited by Reuters on Monday, 25 May 2026, JPMorgan lowered its 2026 average gold price forecast to $5,243 per ounce from $5,708 previously.

At the exchange rate of Rp17,675 per US dollar, $5,243 equates to approximately Rp92.67 million per ounce, while the $6,000 target is around Rp106.05 million per ounce.

Reuters reported that JPMorgan observed a decline in investor interest in gold following a significant rally earlier. Futures trading activity has also yet to show a significant recovery.

JPMorgan noted several market indicators pointing to a slowdown in short-term gold demand, including low open interest in COMEX gold futures contracts. Institutional investor positions in futures markets remain stagnant, and flows into gold-based exchange-traded funds (ETFs) are still limited.

The bank said the weakening investor appetite has temporarily stalled gold price momentum, but maintains a bullish base case for the metal. Demand is expected to rebound in the second half of 2026, driven by continued demand from global central banks and institutional investors. Previously, JPMorgan had projected gold prices could reach $6,300 per ounce by end-2026.