JPMorgan analysts note that investors still see gold as a prime hedging asset amid market volatility, projecting the precious metal's price will maintain its upward trajectory and hit $3,300 by year-end.
The precious metal has surged from $2,500 to $3,000 per ounce in just 210 days, bank analysts note. By comparison, previous $500 surges typically took about 1,700 days on average. The precious metal continues to rise, with 19% gains year-to-date and a 40% climb over the past twelve months.
Meanwhile, analysts at Societe Generale attribute gold’s current rally primarily to momentum trading rather than fundamentals. They believe such a trend will persist, forecasting the precious metal to reach $3,300 per ounce by year-end.
Goldman Sachs is also forecasting gold to climb to $3,300 by the end of the year. The bank points to strong inflows into gold-backed ETFs and robust demand for bullion from central banks as key drivers of the rally.