The XAU/USD index, which tracks gold prices, is trading at $4,300 on Tuesday. It had plunged to a low of $4,029 last week, but news of the US-Iran peace deal pulled it back. On the heels of the deal being officially signed on June 19 in Switzerland, leading global investment JP Morgan wrote in a note that gold prices could reach $6,000 an ounce by the end of 2026.
While Greg Shearer, Head of Base & Precious Metals at JP Morgan, acknowledged the recent dip, he predicted that it could surge after the deal is inked. “Gold is stuck in a bit of a technical no-man’s land. Trudging above the 200-day moving average around $4,340/oz and capped for now below the 50-day moving average at $4,730/oz. Amid this sideways plod, and with growing worries that the Fed might have to respond to energy-driven inflation with hikes, gold is on the back burner for most investors at the moment,” Shearer said.
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JP Morgan Predicts Gold Prices To Hit $6,000 in 2026
The JP Morgan analyst predicted that gold prices are on their way to reach the $6,000 mark by the year-end. “These themes are on hold until more clarity arrives around a resolution of the Iran conflict, which removes some of the tail risks for energy prices, inflation and yields,” he said. That’s a surge of nearly 40% from its current value in the next six months.
Therefore, an investment of $1,000 could turn into $1,400 if the price forecast turns out to be accurate. JP Morgan has remained bullish on gold prices since 2022, providing accurate estimates. Add to the central banks’ accumulation of precious metals, and the prices could soar after the US-Iran war settles. Oil prices are already trading in the $80 range, giving investors a sigh of relief.