JPM Predicts Gold Surge as Central Banks Load Up

JP Morgan forecasts gold prices will reach $3000 per ounce in 2025, driven primarily by continued central bank purchases and ETF inflows.

Following a 27% rally in 2024, the outlook remains strong with central bank buying up 54% year-over-year in late 2024, including renewed purchasing by China’s central bank.

The bank identifies two scenarios – either increased trade tensions and inflation, or a Federal Reserve easing cycle – both of which could push gold prices higher. Adding to the bullish outlook, JP Morgan notes that with over $6 trillion currently in money market funds and ETF holdings 6% below 2020 levels, there’s significant potential for increased investment demand, particularly if money market fund attractiveness diminishes under a more stable macro environment in 2025.