According to JPMorgan, gold may have a chance to increase in price further as tensions in the Middle East increase. The company’s forecast predicts bullion prices will average $2,500 an ounce in the fourth quarter, but analyst Gregory C. Shearer said in a report Sunday that the combination of tensions in the Middle East and Russia’s gold ban will continue to support rising precious metal prices. Spot gold has surged in 2024 with gains of more than 14%. Prices hit an all-time high of $2,448.80 an ounce on Friday as investors braced for further escalation in the Middle East. The price also closed Friday session at a record level of 2,374.10 USD. Over the weekend, Iran made good on its threat to attack Israel by launching more than 300 drones and missiles against targets in the country. Iran said it was responding to Israel’s attack on its embassy compound in Damascus, Syria. @GC.1 YTD Mountain Gold hit a new all-time high on Friday, but JPMorgan thinks bullion has plenty of room to rise. Investors also remain wary of persistently high inflation, which has weighed on markets in recent days and pushed back expectations for interest rate cuts by the Federal Reserve. “Given its position and recent price action, the risk of a reversal in gold remains elevated in the near term although geopolitics remains a bullish factor amid cyclical risks,” he said. escalating retaliation between Israel and Iran. “Overall, we expect any correction lower to remain bought and expect the longer-term direction to remain higher in the coming quarters.” Shearer added that gold holders are unlikely to abandon their holdings in the near term as prices rise. “For us, the most surprising observation was actually the lack of actual selling in the rally that we would normally expect based on the magnitude of price increases,” the analyst said. “In essence, rather than being driven by an onslaught of new physical demand, it appears that the recent rally and less liquidity in early April may have had more to do with a lack of people Large sales in a gold market generally still fetch good prices.” – CNBC’s Michael Bloom contributed to this report.