According to APP, JPMorgan Chase stated in a report: "Although gold prices have fallen by about 17% from their January peak before the conflict amid a stronger dollar and widespread risk aversion in the market, this has historically been just a temporary pullback to await buying opportunities, and the longer the conflict lasts, the stronger the bullish case becomes."

Latest market data shows that spot gold prices are currently hovering around $4,560 per ounce, a cumulative drop of over 20% from the historical peak of approximately $5,595 per ounce reached on January 29. This pullback was mainly driven by a stronger US dollar index, a recovery in global risk appetite, and some profit-taking. However, geopolitical risks related to the Middle East conflict have not completely subsided, and supply disruptions and uncertainties continue to provide structural support for gold . JPMorgan Chase 's latest statement further confirms the market's view that there is no need to be overly pessimistic about short-term volatility, emphasizing that historical experience shows that similar geopolitically driven pullbacks often present buying opportunities.

From a fundamental perspective, gold, as a traditional safe-haven asset, typically rises rapidly in the early stages of a conflict. However, once the market digests the initial shock and other macroeconomic factors such as a strong dollar emerge, a temporary pullback occurs. Nevertheless, JPMorgan Chase points out that as the conflict persists, safe-haven demand, central bank gold-buying enthusiasm, and investors' diversification strategies will gradually strengthen the bullish arguments. The current global trend of central bank gold purchases remains unchanged, coupled with persistent geopolitical uncertainty, ensuring that the upward trend in gold's central value remains intact. JPMorgan Chase has previously raised its year-end 2026 target price to $6,300/oz, maintaining its long-term expectation above $4,500/oz, demonstrating strong confidence in a structural bull market.

The following is a comparison of key drivers of gold prices in the near term and their historical performance:

In-depth analysis shows that this round of gold price correction is more of a normal digestion after the "bad news has been priced in" rather than a trend reversal. At the beginning of the conflict, gold prices surged to above $5400/ounce, then retreated as negotiating signals and risk appetite improved, but the tight balance in fundamentals remains unchanged. Investors need to pay attention to the subsequent development of the conflict: if it lasts longer, the safe-haven premium will regain dominance; if it eases quickly, short-term volatility may further increase. For ordinary investors, the current price level already provides a strong safety margin, making it suitable for phased investment in physical gold or related ETFs; for institutions, JPMorgan 's report provides clear tactical guidance for gold allocation, namely, viewing short-term corrections as strategic buying opportunities.
Editor's Summary <br />JPMorgan Chase's latest report clearly characterizes the current 17% pullback in gold as a historic short-term correction, emphasizing that the longer the conflict lasts, the stronger the bullish reasons become. Although the latest gold price has fallen by more than 20% from its January peak, the medium- to long-term upward logic remains unchanged. Investors need to pay attention to geopolitical developments and the dollar's trend to wait for opportunities.