There may be a case for another gold rally

SINCE gold’s peak in late January at about US$5,500 per ounce, the price of the metal has been steadily drifting down. It went for about US$4,050 on Tuesday (Aug 4). The bears have a grip on the market for the time being, you would think.

Yet analysts at JPMorgan Global Research remain bullish and forecast gold prices to average US$6,000 per ounce by the final quarter of 2026. More on that later.

First, the bears’ case. Gold pays no interest, so the opportunity cost of holding the metal rises when bond yields start climbing. The 10-year US Treasury yield was 4.7 per cent on Tuesday, while the 30-year touched a 19-year high of 5.24 per cent last week.