Gold Price Rebounds After Sharp Selloff. J.P. Morgan Says It Can Hit $6,000.

The price of gold is up nearly 60% so far this year. (dreamstime)

The price of gold rebounded Wednesday despite investor caution after a sharp selloff over the past two days.

Gold futures contracts were up 2.3% to $4,159.70 an ounce. Earlier in the session, gold was down after the largest single-day outflow from gold-backed exchange-traded funds in five months, MUFG analyst Soojin Kim wrote.

She said the outflow suggests “some profit-taking and is a sign of a technical correction.”

Gold plummeted 5.7% on Tuesday, its largest drop in more than 12 years and continued its decline in yesterday’s session. Amid fears the metal had been overbought, investors locked in profit after a record-breaking run.

The precious metal is traditionally a haven in times of market uncertainty and there has been a flight to it amid the continuing U.S. government shutdown and global instability in the Middle East and Ukraine.

“Investors are also watching upcoming U.S.-China trade talks, which could ease geopolitical tensions that previously fueled demand for safe-haven assets,” Kim said.

Created with Highcharts 9.0.1Gold Price Per Troy OunceSource: FactSetAs of Oct. 24, 4:15 p.m. ET

Created with Highcharts 9.0.1Oct. 20Oct. 244,0004,0504,1004,1504,2004,2504,3004,3504,400$4,450

However, gold has been performing more like a growth asset this year and despite the sharp drop this week, gold remains up nearly 60% in 2025—driven by a central-bank buying spree and the prospect of lower interest rates from the Federal Reserve.

The fundamentals supporting gold’s rise remain in place, according to the Global Commodities Team at J.P. Morgan. Foreign managers of U.S. assets have diversified from dollars to gold this year, causing demand to rise. If their U.S. exposure drops to 43% from around 45% today, and half a percentage point is redirected to gold, prices could rise to $6,000 per ounce by 2028, the team predicted.

It also helps that supply has been largely unchanged since 2018. “It’s just a very clean story,” the analysts said. “You have a lot of buyers and you have no sellers.”

Shares of gold miners also ticked up Thursday. Newmont , one of the world’s largest gold miners, was up 1.7%, having tumbled 9% during Tuesday’s pullback. The miner reports earnings after the closing bell Thursday. Barrick Mining climbed 2.6%, while Agnico Eagle Mines rose 0.9%.

Other precious metals were also in the green. Front-month silver jumped 2.9% to $49.10, while platinum jumped 3.7% to $1,610.30.

Write to Patrick O’Donnell at patrick.odonnell@barrons.com