"The price of gold could reach $6,300 per ounce in 2026," said the famous JPMorgan bank's forecast, which has been quite hot news lately. Their analysis is based on two main points. Those points are...
The rate at which central banks are buying gold.
Before 2022, comparing with previous periods, it is estimated that the amount of gold purchased by central banks will reach about 800 tons this year.
This is about 70% higher than previous normal rates, and it is evident that the amount is significantly greater than in regular periods. The fact that major national banks are increasingly relying on gold instead of dollars is the main trigger that will support gold prices in the long run.
The second point is...
The buying interest of investors.
Not only central banks but also private investors are increasingly interested in gold, and JPMorgan states that by the end of 2026, the price of gold could reach $6,300 per ounce (which is over 200 million Myanmar Kyat).
However, if we look at it objectively, this forecast is somewhat higher compared to other major banks. For example, other big institutions like Goldman Sachs and Citi also see gold prices increasing, but their forecasts remain around $5,000 or below $6,000. JPMorgan's $6,300 is quite aggressive.
Overall, while there may be slight fluctuations in gold prices over short periods, the long-term trend appears to be upward. Especially if countries around the world continue to reduce their reliance on the dollar and accumulate more gold in a path of "De-dollarization," gold prices are likely to remain strong.