University of Kwazulu-Natal

Gold Could Soar 80 To 6 000 If There S Even A Minuscule Shift Away

Bonisiwe Shabane
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gold could soar 80 to 6 000 if there s even a minuscule shift away

The price of gold has been on a tear in recent years and could reach astronomical heights by the end of the decade if foreign investors shift away slightly from the U.S., according to... In a note on Wednesday, they laid out a scenario where gold would hit $6,000 per ounce by 2029, an 80% jump from the current price of about $3,300. If just 0.5% of foreign-held U.S. assets are reallocated to gold, that would result in 18% annual returns and eventually send prices to $6,000, JPMorgan estimated. That’s because the supply of gold isn’t expanding by much, meaning that a relatively minuscule boost in demand can create a big price swing. “While hypothetical, this scenario illustrates why we remain structurally bullish gold and think prices have further to run,” analysts wrote.

The comments below are an edited and abridged synopsis of an article by Jason Ma JPMorgan Forecasts Gold at $6,000 by 2029 Amid Shifting Global Investment Trends JPMorgan analysts have projected a potential surge in the price of gold to $6,000 per ounce by 2029, representing an 80% increase from the current price of approximately $3,300. This bullish forecast is grounded in the assumption that just 0.5% of US assets held by foreign investors are reallocated into gold. The bank highlights the limited growth in gold supply, suggesting that even small shifts in demand can result in significant price increases. Gold has experienced strong upward momentum in recent years, driven by macroeconomic and geopolitical forces.

A significant turning point occurred in 2022 when Russia’s invasion of Ukraine led to widespread financial sanctions and the freezing of its dollar and euro reserves. This triggered a shift among central banks globally, prompting increased gold purchases as a hedge against similar future risks. Further fueling gold’s rise are high inflation, growing fiscal deficits, and a declining trust in US assets. JPMorgan analysts point to the political and economic disruptions initiated during President Donald Trump’s previous administration—including a trade war and criticism of the Federal Reserve—which undermined investor confidence in US financial stability. The Trump administration’s push for “burden sharing” among countries reliant on the US dollar as a reserve currency also raised concerns among foreign investors, increasing the appeal of gold as an alternative reserve asset. The price of gold has been on a tear in recent years and could reach astronomical heights by the end of the decade if foreign investors shift away slightly from the U.S., according to...

In a note, they laid out a scenario where gold would hit $6,000 per ounce by 2029, an 80% jump from the current price of about $3,300. If just 0.5% of foreign-held U.S. assets are reallocated to gold, that would result in 18% annual returns and eventually send prices to $6,000, JPMorgan estimated. That’s because the supply of gold isn’t expanding by much, meaning that a relatively minuscule boost in demand can create a big price swing. “While hypothetical, this scenario illustrates why we remain structurally bullish gold and think prices have further to run,” analysts wrote. The price of gold has been on a tear in recent years and could reach astronomical heights by the end of the decade if foreign investors shift away slightly from the U.S., according to...

In a note on Wednesday, they laid out a scenario where gold would hit $6,000 per ounce by 2029, an 80% jump from the current price of about $3,300. If just 0.5% of foreign-held U.S. assets are reallocated to gold, that would result in 18% annual returns and eventually send prices to $6,000, JPMorgan estimated. That's because the supply of gold isn't expanding by much, meaning that a relatively minuscule boost in demand can create a big price swing. "While hypothetical, this scenario illustrates why we remain structurally bullish gold and think prices have further to run," analysts wrote. Daily stocks & crypto headlines, free to your inbox

By continuing, I agree to the Market Data Terms of Service and Privacy Statement Analysts at JPMorgan estimated that the price of gold could reach $6,000 per ounce by 2029, up from about $3,300 now, if just 0.5% of U.S. assets held by foreign investors is reallocated to the precious metal. Gold has been on a tear in recent years and picked up even more momentum after President Donald Trump launched his trade war. The price of gold has been on a tear in recent years and could reach astronomical heights by the end of the decade if foreign investors shift away slightly from the U.S., according to... In a note on Wednesday, they laid out a scenario where gold would hit $6,000 per ounce by 2029, an 80% jump from the current price of about $3,300.

If just 0.5% of foreign-held U.S. assets are reallocated to gold, that would result in 18% annual returns and eventually send prices to $6,000, JPMorgan estimated. That’s because the supply of gold isn’t expanding by much, meaning that a relatively minuscule boost in demand can create a big price swing. (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates. (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.)

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