Gold may hit $4,000/oz in 12 months even in positive global growth scenario
This story was originally published at 16:09 IST on 9 May 2025
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MUMBAI – Gold prices could hit $4,000 per ounce in the next 12 months even in a positive global growth scenario where US and global GDP rises, Grace Peters, global head of investment strategy at JPMorgan, was quoted as saying in a report by Kitco.
"We came into this year with a price target for gold of $3,500. We've just broken through that now. So again, looking 12 months forward, north of $4,000, we think, would be a new reasonable price target for gold, with key drivers being still emerging market central banks," Peters said. "When you look at EM (emerging market) positions versus DM (developed market) central banks, there's quite a lot of room still for EM central banks to position closer to where their DM counterparts are, and also retail ETF buying," she added.
Peters added that with the expectations of GDP being positive, JPMorgan expects demand for gold from jewellery and the technology sector to be resilient and to grow over the next 12 months. Peters acknowledged that there is a degree of optimism about a potential trade deal with China already priced into US equities, according to the report.
"Our sense is that US' tariffs on China are prohibitively high, so negotiation is good. They're still likely to remain high, but we believe that overall it will bring the US effective tax rate to a mid-teen level. This is a situation where the US and global GDP will continue to grow, corporate earnings can continue to be strong and therefore should be welcomed by the markets and risk assets," Peters said. End
US$1 = INR 85.37
Reported by Ashutosh Pati
Edited by Nishant Maher
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