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Gold Weathers Post-Election Dip, JPMorgan Sees 'Stumble, Not Sea Change'

 
 Gold Weathers Post-Election Dip, JPMorgan Sees 'Stumble, Not Sea Change (photo credit: SHUTTERSTOCK)
Gold Weathers Post-Election Dip, JPMorgan Sees 'Stumble, Not Sea Change
(photo credit: SHUTTERSTOCK)

Gold Stumbles but Doesn't Sink After Trump Re-Election, JPMorgan Sees Staying Power

JPMorgan's Commodities Research team sees the post-election fall in gold prices as a temporary setback rather than a major shift. Despite an initial dip, the bank's analysts anticipate gold will continue to perform well in the coming years.

Projecting gold could reach $2,850 per ounce by late 2025, JPMorgan believes the "debasement trade" will make gold an attractive hedge as the new administration's policies unfold. This may bode well for investors in gold-backed ETFs like the SPDR Gold Shares (GLD) and the iShares Gold Trust (IAU).

While the bank expects base metals like copper to face near-term turbulence due to potential trade tensions and yuan depreciation, they see aluminum as a potential bright spot that could "significantly mitigate" the bearishness in the base metals space.

Key Points:

  • JPMorgan analysts view the recent drop in gold prices as a "stumble, not a sea change"
  • They expect gold to perform strongly in the coming years, projecting it could reach $2,850 per ounce by late 2025
  • This "debasement trade" may make gold a go-to hedge as the new administration's policies take shape

Overall, JPMorgan's analysis suggests gold's long-term outlook remains strong, despite the recent stumble in prices.

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This article is for informational purposes only. The opinions and analysis herein are those of the author and are not financial advice. The Jerusalem Post (JPost.com) does not endorse or recommend any investments based on this information. Investors should consider their financial situation, investment goals, and risk tolerance before making any decisions. Consulting a qualified financial advisor is recommended. JPost.com is not liable for any investment losses from using this information. The information provided is for educational purposes only and should not be considered as trading or investment advice.

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