JP Morgan Shrugs Off Gold Crash, Sets A New Higher Target - SPDR Gold Shares (ARCA:GLD), abrdn Physical Precious Metals Basket Shares ETF (ARCA:GLTR)

Core Viewpoint - JP Morgan maintains a bullish outlook for gold, projecting a price of $6,300 per ounce by year-end despite recent selloffs in precious metals [1] Group 1: Market Trends - The investment bank emphasizes a structural trend of diversification towards real assets, which is expected to continue amid a regime favoring real asset performance over paper assets [2] - Central bank buying and sustained investor demand are anticipated to support gold prices, with forecasts of approximately 800 tons of official-sector gold purchases by 2026 as reserve diversification from the U.S. dollar persists [3] Group 2: Recent Market Actions - Despite long-term optimism, gold and silver prices fell at the start of the week, with spot gold dropping to $4,401 per ounce and silver to $71.30 as investors unwound leveraged positions [4] - The CME Group has raised margin requirements for gold and silver futures, increasing COMEX gold margins from 6% to 8% and silver margins from 11% to 15%, which typically reduces speculative participation and can lead to further price declines [6]