JPMorgan's gold forecast

JPMorgan’s global head of commodity research expects gold to reach $2,500 an ounce this year. Gold has the potential to reach $2,500 an ounce this year, according to Natasha Kaneva, global head of commodity research at JPMorgan Chase & Co. “We believe $2,500 is a possibility because the market tends to get overexcited,” she said in a Bloomberg TV interview after bullion hit an all-time high of $2,195.15 on Friday. To reach that price target, “we need confirmation that inflation and jobs are moderating and that the Fed is actually cutting,” Kaneva said. The Fed’s long-awaited move toward looser monetary policy is expected to boost gold’s appeal compared with yield-yielding assets such as bonds. Policymakers need to see more evidence that inflation is moving toward the 2% target before they lower borrowing costs, she said.