Gold could soar 80% to $6,000 if there’s even a minuscule shift away from US assets, analysts say

Analysts at JPMorgan estimated that the price of gold could reach $6,000 per ounce by 2029, up from about $3,300 now, if just 0.5% of U.S. assets held by foreign investors is reallocated to the precious metal. Gold has been on a tear in recent years and picked up even more momentum after President Donald Trump launched his trade war.

The price of gold has been on a tear in recent years and could reach astronomical heights by the end of the decade if foreign investors shift away slightly from the U.S., according to analysts at JPMorgan.

In a note on Wednesday, they laid out a scenario where gold would hit $6,000 per ounce by 2029, an 80% jump from the current price of about $3,300.

If just 0.5% of foreign-held U.S. assets are reallocated to gold, that would result in 18% annual returns and eventually send prices to $6,000, JPMorgan estimated.

That’s because the supply of gold isn’t expanding by much, meaning that a relatively minuscule boost in demand can create a big price swing.

Gold has jumped more than 20% so far this year, and prices have doubled from where they were three years ago.

After Russia invaded Ukraine in 2022, triggering financial sanctions on Moscow that saw its dollar and euro assets frozen, central banks around the world began buying up gold out of concern that their own holdings could be at risk someday.

A 0.5% reallocation of total foreign holdings of U.S. assets into gold translates to $273.6 billion overall pouring into the precious metal over four years, or about 2,500 metric tons, JPMorgan calculated.

Source: Financeyahoo