The price of gold has been on an unprecedented upward trajectory, with a JPMorgan analyst predicting that it could reach $8,500.
Gold Could Breach $8,000 On Allocation Shift
JPMorgan’s global market strategist, Nikolaos Panigirtzoglou, has suggested that the price of gold could surge to the range of $8,000-$8,500 if private investor allocations to the precious metal increase to 4.6% from the current 3% of their portfolios, as reported by MarketWatch on Thursday.
Panigirtzoglou’s assessment is based on the notion that gold could partially replace the bond portion of a balanced portfolio, given the current economic policies. He also warned of potential risks, given that commodity trading advisers are heavily invested in gold and silver.
The analyst warned that gold and silver may face near-term pullbacks due to profit-taking or a return to average price levels.
Schiff Warns Stocks Weaker In Real Terms
This prediction comes on the heels of gold’s record-breaking performance. On Thursday, Jan. 29, gold prices were on the verge of reaching $5,600 per ounce, a psychological milestone, after a 10% surge in just four sessions.
Gold prices rose after the Federal Reserve kept interest rates unchanged at 3.50%–3.75%, a move markets viewed as continued monetary support that reduces the cost of holding non-yielding assets. Analysts say rising geopolitical tensions, particularly between the U.S. and Iran, and President Donald Trump’s comments on the dollar, have also driven investors toward gold as a safe-haven asset amid growing uncertainty.
Gold and silver have also seen a surge in their combined market value, which now stands at over $41 trillion, according to data from CompaniesMarketCap.com. This indicates a significant shift in investor sentiment towards precious metals.
Meanwhile, economist Peter Schiff warned that stocks are weaker than they appear, noting the Dow is worth just 9 ounces of gold—its lowest level since 2013 and nearly 80% below its 1999 peak when measured in gold. He cautioned investors not to be misled by inflation-driven nominal prices, calling the situation a "historic bear market."
Price Action: Over the past year, SPDR Gold Trust (NYSE:GLD) surged 94.56%, as per data from Benzinga Pro.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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