Gold has emerged as a major winner amid tariff turmoil and geopolitical uncertainty—if foreign buyers begin to increase their allocations, there is still significant upside potential, JPMorgan states.
The Wall Street giant predicts that international institutional investors may be rethinking their risk-return expectations for U.S. assets, as the current uneasy macro environment keeps them on alert. JPMorgan states that if they shift 0.5% of their U.S. overseas assets to gold, this move could push gold prices to $6,000 per ounce before early 2029.
“International investors are beginning to reassess the 'excessive privilege' status of the dollar and its identity as a safe-haven asset,” wrote JPMorgan Commodity Strategist Natasha Kaneva in a report to clients. “Gold is expected to benefit from this shift, although it only accounts for 4% of global asset allocation. Limited supply growth means that even small reallocations could have a significant impact on gold prices.”
As an asset viewed as a safe store of value during periods of political and financial uncertainty, gold has recently soared to new highs, with prices surpassing $3,500 per ounce in April.
Since the beginning of the year, gold has accumulated an increase of about 26%, and has risen another 5% since Trump announced a comprehensive tariff increase on April 2.
“Although this is just a hypothetical scenario, it explains why we remain structurally bullish on gold and believe there is still upside potential for gold prices,” Kaneva said.
