JPMorgan (JPM) has just made a jaw-dropping prediction. The bank forecasts that gold (CM:XAUUSD) could soar to $6,000 per ounce by the end of U.S. President Donald Trump’s current term in 2029. That’s a massive 80% jump from where gold sits now. What’s behind this bold outlook? According to JPMorgan, even a small shift in global asset allocations could drive gold prices skyward.
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Small Shifts in Global Assets Drive Gold Prices Toward $6,000
JPMorgan’s analysis hinges on a seemingly modest shift: just 0.5% of foreign-held U.S. assets reallocated to gold. While that may not seem like much, the bank points out that such an allocation would create an annual return of 18%, pushing gold toward the $6,000 mark. This influx could total around $273.6 billion, or 2,500 metric tons, over the next four years. While the total supply of gold remains steady, even a slight increase in demand can have a dramatic impact on prices, according to the bank. The more demand rises, the higher prices are likely to climb.
Gold’s Bull Run Continues amid Economic Uncertainty
Gold is already enjoying a strong year in 2025, having surged nearly 28%. This comes as geopolitical and economic tensions continue to rise. Gold prices recently hit $3,500 per ounce, more than double what they were three years ago. Investors have flocked to the precious metal amid the ongoing uncertainty stirred up by Trump’s trade wars and global instability. According to JPMorgan, Trump’s “burden sharing” policies, which challenge countries benefiting from the U.S. dollar’s reserve currency status, have put foreign investors on alert. This has further fuelled demand for gold.
What’s Next for Gold?
JPMorgan’s bullish forecast for gold isn’t entirely new. Last month, the bank predicted an average price of $3,675 per ounce by the fourth quarter of this year, with prices likely to reach $4,000 by mid-2026. The $6,000 forecast by 2029 only further supports JPMorgan’s positive view on gold, which is positioned to benefit from both a weakened U.S. dollar and persistent global financial and political risks.
At the time of writing, gold is sitting at $3,252.03.
