Will gold touch ₹1.2 lakh soon? Here is what JP Morgan and Goldman Sachs are predicting about yellow metal prices

Gold prices are expected to rise significantly in the coming years, according to JP Morgan. The bank predicts gold could reach $4,000 per ounce by mid-2026. The bank cited growing recession concerns, new US tariffs, and worsening US-China trade tensions as key reasons behind the expected price rise. Spot gold has already gained 29% this year, hitting a record high of $3,500 per ounce on April 22.

Why are Gold Prices Rising?

JP Morgan anticipates gold will average $3,675 per ounce by the end of 2025. They also noted that strong demand from investors and central banks could push prices to $4,000 sooner.

Goldman Sachs has also become more optimistic about gold's future, raising its year-end forecast for 2025 to $3,700 per ounce. They suggest that in an extreme scenario, gold could even reach $4,500 by the end of next year.

Demand is Key

A major reason for JP Morgan's prediction is the expectation of continued strong buying from both investors and central banks. The bank estimates net gold demand will average around 710 tonnes per quarter this year. “Underpinning our forecast for gold prices heading towards $4,000oz next year is continued strong investor and central bank gold demand,” analysts wrote.

However, JP Morgan also pointed out potential risks that could lower gold prices. If central bank demand weakens, or if the US economy handles tariff shocks better than expected, the Federal Reserve might take a more aggressive approach to controlling inflation, possibly by raising interest rates. “More materially bearish would be a scenario where US economic growth remains extremely resilient to tariffs, allowing the Fed to turn much more proactive in fighting inflation risks,” the bank warned.

What About Silver?

Silver, on the other hand, may face challenges in the short term due to weak industrial demand. But JP Morgan expects silver prices to recover in the second half of 2025, potentially reaching $39 per ounce by the end of the year.

The future of gold prices will depend on demand and whether global economic risks increase or decrease.