New Delhi [India]April 25 (ANI): Global investment banking giant JP Morgan has confirmed his rapid stance on gold, introduced it as the most optimal hedge through 2025 and 2026, which is amidst increasing risks of stagflation, recession, currency debut and American policy uncertainties.
“For investors, we think gold is one of the most optimal hedges for unique combination of stagflation, recession, debut and American policy risks in 2025 and 2026.”, The report states.
Show full article
The report highlighted the strong speed in gold prices seen as a clear indicator of investor spirit in the first quarter of 2025.
This year estimates the demand for average gold from investors and central banks in about 710 tonnes per quarter, which is above the 350-ton limit required to maintain price stability.
According to the analysis, the price increase in quarterly demand may increase by 2 percent in prices. It is also forecast that the central banks will buy about 900 tonnes of gold in 2025, with investor hunger, especially exchange-traded funds (ETFs) and Chinese buyers are expected to grow.
It states, “Macro environment remains mature for both the central banks (900 tonnes forecast in 2025) -another expansion in investor holdings, especially for a constant high level of purchase of both ETFs and China.”
JP Morgan cited the growing American tariff and as significant contributors to the greater possibility of economic recession to increase trade tension with China.
The bank noted signs of stagflation-where slow growth and high inflation co-existence-fuel strengthens a long-term rapid tendency to sleep. A structural bull case, it is said, continuous increase in prices over time.
The report has rapidly extended the forecast of gold price, hoping that it is about 3400 USD to 3400 USD to an average USD 3,675 per ounce by the fourth quarter of 2025. It also potentially crosses the USD 4,000 per ounces by the second quarter of 2026, which increases the risks of global economic stress and recession.
It states, “Tariff-powered recession and stagflation risks are estimated that it continues to continue the structural bull run of gold. Now we see that gold prices reach 4Q25 at an average of 3,675/Oz, which is above 2Q26 above 2Q26 to 4,000/Oz.”
JP Morgan concluded that if the demand underlines the current estimates, the prices of gold may be higher than expected, which strengthens its role as a reliable hedge amidst increasing global uncertainties. (AI)
This report has been auto-generated from Ani News Service. ThePrint does not have any responsibility for its content.