Gold is JPMorgan’s top pick in commodities with price eyeing $2 500

Gold is the No. 1 pick in commodities markets for JPMorgan Chase & Co and the price has the potential to reach $2 500 an ounce this year, according to the bank’s global head of commodities research.

“We believe that $2 500 is a possibility” after bullion reached an all-time high of $2 195.15 on Friday, Natasha Kaneva said during a Bloomberg TV interview. “Because the market tends to get overexcited.”

To achieve that price target, “we need a confirmation from continued moderation in the inflation and in the jobs numbers as well and the confirmations that the Fed indeed is cutting,” said Kaneva.

The Fed’s long-anticipated pivot to looser monetary policy is widely expected to boost gold’s appeal compared with yield-bearing assets like bonds. Policymakers have said they needed to see more evidence that inflation is headed toward its 2% target before lowering borrowing costs.

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