Gold Hits Record High as JPMorgan Predicts $4,250 by 2026 Amid Fed Uncertainty

Spot Gold surged to a historic peak of $3,576 per troy ounce, fueled by growing expectations of an imminent Federal Reserve rate cut. The precious metal's appeal strengthens in low-rate environments as the opportunity cost of holding non-yielding assets diminishes.

JPMorgan analysts project gold will climb to $3,675 by year-end, representing a 2.7% upside from current levels. Their long-term forecast is notably bullish—anticipating $4,000 by mid-2026 and $4,250 by year-end 2026.

The bank warns that political pressure on Fed independence could accelerate gold's ascent. A brewing confrontation between former President TRUMP and Fed Governor Lisa Cook has intensified scrutiny of central bank autonomy. "Any erosion of the Fed's independence would fundamentally reshape gold's valuation framework," noted JPMorgan analyst Patrick Jones.