JPMorgan cuts gold price target as Fed rate risks return

JPMorgan has cut its gold price targets, signaling that the rally may be harder to sustain as Federal Reserve-rate risk returns. After a week in which Reuters reported spot gold was up more than 2%, investors had expected further gains into year-end driven by rate-cut hopes, central-bank purchases, and safe-haven demand. In a shift from its June view, JPMorgan now forecasts gold at $4,300/oz in Q3 and $4,500/oz in Q4, citing weaker demand from key buying sectors than previously expected. The bank also warned its outlook skews to the downside if strong U.S. data pushes the Fed back toward potential rate hikes. Other banks remain more bullish in different ways, including Goldman Sachs at $4,900/oz by end-2026 and UBS at $5,200/oz over the next 12 months. The updated forecast intensifies the question of whether gold’s rebound is capped or durable.