Global investment powerhouse J.P. Morgan is turning bullish on gold, and for good reason. Their latest forecast projects gold could top $4,000/oz. by mid-2026, with an average price of $3,675/oz. by Q4 2025¹. Which seems to be a response to powerful economic forces reshaping the global financial system.
At Red State Gold Group, we break down what’s driving this rally and why now may be a critical moment to secure your future with physical gold and silver.
Key Drivers Behind Gold’s Momentum
1. The U.S. Dollar Is Topping Out
The dollar is still trading 10–15% above its fair value². According to J.P. Morgan, further appreciation is unlikely. As the dollar stabilizes or weakens, gold typically benefits.
2. Real Yields Are No Longer a Barrier
Historically, gold moved inversely to real yields. But this pattern has shifted. Gold has shown resilience during periods of rising yields and tends to respond even more favorably when yields drop³.
3. Central Banks Are Buying More Than Ever
In both 2022 and 2023, central banks added over 1,000 metric tons of gold⁴—record-setting levels. Over 80% of central banks surveyed plan to continue increasing their reserves, viewing gold as a hedge against inflation and global instability.
4. Retail and ETF Demand Is Picking Up
As interest rates stabilize and cash yields soften, investor demand for gold is rising again. Gold-backed ETFs, a key indicator of retail interest, have seen renewed inflows after two years of outflows⁵.
What This Means for Investors
Gold’s recent strength is not a short-term trend or speculative hype. It’s backed by real economic forces, institutional demand, and global monetary strategy. With both central banks and individual investors increasing exposure, gold’s momentum could continue well into 2026.
If you’ve been waiting for the right time to diversify with gold, this may be it.
Why Physical Gold and Silver Still Matter
- No counterparty risk
- Hedge against inflation and currency devaluation
- Rising global demand
- Private, tangible, and secure assets
Final Thought
With gold forecasted to reach new highs over the next 12 to 24 months, the opportunity to secure and grow your wealth with precious metals is clear. At Red State Gold Group, we help clients move confidently into physical assets with expert assistance and one-on-one support.
Speak with a Precious Metals Specialist Today to explore your options and secure your financial future.
Sources
¹ J.P. Morgan – Gold Prices: Riding the Next Wave Higher
² J.P. Morgan Private Bank – Is it a Golden Era for Gold?
³ J.P. Morgan Private Bank – Real Yields & Gold Sensitivity
⁴ World Gold Council – Gold Demand Trends Q1 2024
⁵ World Gold Council – Gold-Backed ETF Flows
