Gold to catch fire? Prices to surge by 46% by year-end, says JP Morgan

Mumbai: Gold and silver prices have staged a sharp recovery following Diwali, with a fresh forecast from global investment banking giant JP Morgan raising concerns that the yellow metal could become even more expensive. The bank expects international gold prices to average $6,000 per ounce in the fourth quarter of 2026, representing a potential increase of more than 46% from current levels.

On Monday (November 9), gold was trading at Rs 1,43,750 per 10 grams on India's Multi Commodity Exchange (MCX), while silver climbed to Rs 1,88,102 per kilogram.

Internationally, spot gold rose to $4,129.69 per troy ounce, while silver traded above $53 per ounce.

The weakening US dollar, changing interest-rate expectations and global economic uncertainties have contributed to the precious metals' recovery. Demand for gold as a safe-haven asset and purchases by central banks have also supported its longer-term outlook.

However, the prospect of gold reaching $6,000 per ounce has raised concerns among investors and jewellery buyers about further price increases.

Market observers have cautioned against investing large sums in gold in a single transaction based solely on bullish forecasts. Instead, staggered investments in line with market movements are advisable.

Jewellery buyers should also account for making charges and applicable taxes, which add considerably to the final purchase cost.

Investors must remember that J.P. Morgan's projection is a forecast, not a guarantee, as changing global economic and financial conditions could alter the price trajectory.