Global investment bank JP Morgan wrote in a note to clients that gold prices could double in three years. Analysts from the bank stated that equity hedges are at an all-time high, which lays the groundwork for an explosive rally.

Gold prices could spike by 110% in 2028, wrote JP Morgan. The XAU/USD index, which measures the Spot performance of the commodity, is comfortably sitting above the $4,100 mark. It is up 57% year-to-date, delivering remarkable returns in 10 months.

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Gold Predicted To Double in Price in 2028: JP Morgan

JP Morgan disregarded the recent gold sell-off, claiming that the commodity has further room to grow. The note read that the precious metal is becoming more relevant to retail holders, central banks, and institutional funds. This would aid its monstrous growth as all forms of investors eye to accumulate it.

“If this assessment is correct and retail investors were not behind gold correction, then it is likely that their buying of gold ETFs has been less motivated by momentum and more driven by other factors,” Nikolaos Panigirtzoglou, Managing Director of Global Market Strategy at JP Morgan, wrote with his team of analysts.

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Nikolaos explained that investors have begun using gold as an equity hedge, substituting bonds with a long date, which is dipping in 2025. Even if gold substitutes 2% of the bond holdings, the XAU/USD index could double in value, wrote JP Morgan’s analysts. While it took gold prices five years to double in price, this time around, it could occur in three years.

According to JP Morgan’s assessment, gold prices could reach a high of $8,600 in three years. Therefore, taking an entry position now could be beneficial as the glittery metal could double an investor’s money. Even after the commodity reached a peak, global banks and institutional funds remain exceptionally bullish.