Gold Price: JPMorgan Predicts $2,500 Average in Q4 2024

Gold prices in the US surged to record highs on Wednesday, July 17. The futures price for the precious metal rose 0.1% to $2,470.20, while the spot price held at $2,466.02 per ounce. There are reports that Gold will continue to shine in the back half of 2024, with a prosperous overall final quarter. According to JPMorgan, the gold price is expected to hover around a $2,500 average in Q4 of 2024.

“Gold’s resurgence has come earlier than expected, as it further decouples from real yields,” said Gregory Shearer, Head of Base and Precious Metals Strategy at J.P. Morgan. “We have been structurally bullish on gold since the fourth quarter of 2022 and with gold prices surging past $2,400 in April, the rally has come earlier and has been much sharper than expected. It has been especially surprising given that it has coincided with Fed rate cuts being priced out and U.S. real yields moving higher due to stronger labor and inflation data in the U.S.”

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What is Causing Gold To Boom?

Furthermore, JPMorgan’s Shearer added that several factors are motivating investors to pick up gold, driving its demand and price upward. “Amid fraying geopolitics, increased sanctioning, and de-dollarization, we observe an increased appetite to buy real assets including gold.” With gold prices already hovering near all-time highs, J.P. Morgan sees further potential for the yellow metal as U.S. rates begin to fall.

The parallel rise of Bitcoin ETF success and the gold surge marks an important moment in the history of financial markets. This trend might prepare us for a new status quo of digital and traditional safe-haven assets growing side by side. This offers investors an expanded range of options for portfolio diversification.