Gold and Silver Prices Dip Slightly as Geopolitical Jitters Cap Losses

JP Morgan doubles down on bullish outlook, raising long-term price forecast to $4,500 amid sustained safe-haven demand.

Dubai: Gold and silver prices edged lower on Thursday morning, taking a brief pause in what has been a strong run for the precious metals. The dip comes even as global uncertainties continue to fuel investor interest in safe-haven assets.

In Dubai, the 24K gold variant opened the day at Dh625.75 per gram, a slight decline from Wednesday evening’s closing price of Dh628.25. Other variants also softened, with 22K, 21K, and 18K trading at Dh579.25, Dh555.50, and Dh476.25 per gram, respectively.

Globally, spot gold was trading at $5,198.52 per ounce, marking a marginal decrease of 0.17 per cent. Silver followed suit, falling 1.2 per cent to Dh330.25 per ounce.

Bullish Bank Forecasts

The slight price correction does little to dampen the optimistic long-term sentiment among major financial institutions. US banking giant JP Morgan has significantly raised its long-term price target for gold, now forecasting $4,500 per ounce. The bank remains steadfast in its aggressive year-end 2026 forecast of $6,300 per ounce.

According to a note from the bank, it sees a “continued structural diversification trend” moving into gold, suggesting that the current cycle has “further room to run.”

Uncertainty Fuels the Floor

Market analysts suggest that the downside for gold remains limited due to a complex web of global risks. Tony Sage, CEO of Critical Metals, noted that while prices adjusted slightly, the underlying support for the metal remains robust.

“Renewed demand for safe-haven assets amid rising trade and geopolitical uncertainty could continue to support the market,” Sage said. He pointed to the recent implementation of a 10 per cent global tariff by the US administration, with hints of further increases, as a key factor that could “reignite trade frictions and unsettle global supply chains.”

Adding to the complex geopolitical landscape are the ongoing discussions between Washington and Tehran. While there have been signals of willingness to negotiate from Iranian officials, analysts warn that the path to a definitive agreement is precarious. A failure in diplomacy could trigger a fresh surge in demand for gold.

Furthermore, persistent hostilities in Eastern Europe and rising instability in Mexico are adding additional layers of fragility, reinforcing gold’s status as a primary hedge against uncertainty.