Gold Price Prediction: Yellow Metal To Remain Top Hedge in 2025-2026 Amid Political Turmoil: JP Morgan

JP Morgan, the global investment banking giant has maintained its bullish stance on gold, projecting it as the most optimal hedge through 2025 and 2026 amidst increasing risks of stagflation, recession, currency debasement, as well as US policy uncertainties.

Why Is Gold The Topmost Hedge?

According to the report, "for investors, gold remains one of the most optimal hedges for the unique combination of stagflation, recession, debasement and US policy risks facing markets in 2025 and 2026."

The report also noted that the strong momentum in the prices of gold that was seen in the first quarter of 2025 is a clear indicator of investor sentiment.

JP Morgan in its report also estimates net gold demand from investors and central banks to average around 710 tonnes per quarter this year, well above the 350-tonnes  threshold needed to maintain price stability.

Will Gold prices Rise Further?

As per the report, a 100-tonne rise in quarterly demand could  push prices up by 2%. It also projects that central banks will purchase approximately 900 tonnes of gold in 2025, as investor appetite, especially from exchange-traded funds (ETFs) and Chinese buyers are expected to grow.

The macro-environment is still ripe for both sustained elevated levels of purchases by central banks (900 tonnes forecasted in 2025) as well as a further expansion in investor holdings, particularly from ETFs and China, the report added.

Citing US tariffs and escalating trade tensions with China, JP Morgan called them key contributors to a higher likelihood of economic slowdown.

The report also added that if demand outpaces current projections, gold prices could exceed expectations sooner than anticipated, cementing its role as a reliable hedge amid growing global uncertainties.

Also Read: Why L&T Technology Services Shares Are Falling?