JPMorgan Chase: Gold faces downside risks, and there is still room for interest rate increases

Yuxuan Tang, the Head of Asian Rates and FX Strategy at JPMorgan Private Bank, stated that due to thin liquidity and the potential for further interest rate increases, gold faces downside risks. The Federal Reserve is expected to raise interest rates in December and the first quarter of 2027, pushing the 10-year U.S. Treasury yield to peak between 5.25% and 5.5% by mid-year.

Despite the weakness in the gold market, its appeal as a hedging tool may drive a rebound in gold prices later next year.