Despite gold experiencing its steepest one-day decline since 1983, JPMorgan remains optimistic, forecasting that the precious metal will soar to an astonishing $6,300 per ounce by the close of 2026.

As the largest bank on Wall Street, JPMorgan asserts that robust demand from both nations and individual investors will propel gold prices significantly higher over the next two years.

The bank anticipates that central banks, such as the Federal Reserve in the United States and the European Central Bank, will collectively purchase around 800 tons of gold in 2026.

This trend is driven by a strategic shift among countries aiming to reduce their reliance on currencies, which they fear may depreciate in value.

“Despite recent short-term fluctuations, we are steadfast in our optimistic outlook for gold in the medium term, fueled by ongoing diversification efforts,” JPMorgan stated in a communiqué on Monday.

This positive projection follows a sharp downturn that caught many everyday investors off guard, especially those who had invested heavily in gold during its record-breaking ascent.

Gold plunged nearly 10 percent on Friday – its sharpest one-day fall since 1983 – before extending losses on Monday. On Tuesday morning it briefly rose back above $5,000, after falling as low as $4,500 on Friday.

The slump followed weeks of near-daily record highs, as gold surged on fears over US debt and inflation. Precious metals are seen as ‘safe havens’ at these times.

Gold plunged nearly 10 percent Friday, but has recovered since a further dip on Monday morning. It is now down just under 6 per cent over the past five days

Gold bars sit in storage as analysts shrug off last week’s historic sell-off and predict the precious metal could still hit $6,300 an ounce by the end of 2026

JPMorgan is far from alone in expecting the pullback to prove temporary.

Deutsche Bank reiterated Monday – after Friday’s huge drop – that it sees gold climbing to $6,000 an ounce in 2026, also pointing to sustained investor demand.

UBS has also raised its targets to $6,200 for March, June and September 2026, though it made that call before the sell-off.

Other major banks including Goldman Sachs and Morgan Stanley have also issued forecasts suggesting gold prices could remain near historic highs over the next two years.

Some have even higher targets. When gold went above $5,000 recently, Robert Kiyosaki, the bestselling author of Rich Dad Poor Dad, posted on X. ‘Future for gold $27,000.’

But analysts warn that a move anywhere near that level would require a shock far more severe than today’s inflation fears.

‘You’re talking about US civil unrest, China taking Taiwan, or Russia moving against NATO,’ Andrew Glass, founder of Avatar Commodities, told Daily Mail, as he outlined the kind of doomsday scenarios that could push gold to such extremes.

One of America’s most influential bankers has also weighed in on gold’s rise. 

Ray Kiyosaki, author of the financial self-help bestseller Rich Dad, Poor Dad, is very bullish on gold

Pictured: Billionaire investor Ray Dalio at Davos

Ray Dalio, the billionaire founder of Bridgewater Associates, the world’s biggest hedge fund, said recently that America’s soaring debt – now above $38 trillion – is why gold is soaring.

When governments borrow too much, they are forced to weaken their currencies or keep interest rates artificially low to make the debt easier to manage, a tactic favored by President Donald Trump 

Gold, by contrast, tends to hold its value in these situations because it is not controlled by any government. More gold cannot be created in the same way more bank notes can be printed. 

As fears about debt, inflation and politics grow, more investors pile into gold and pushing the price up.