Gold Mania? JPMorgan Strategist Predicts $8,500 Is Possible Under This Scenario – SPDR Gold Shares (ARCA:GLD)

The price of gold has been on an unprecedented upward trajectory, with a JPMorgan analyst predicting that it could reach $8,500.

Gold Could Breach $8,000 On Allocation Shift

JPMorgan’s global market strategist, Nikolaos Panigirtzoglou, has suggested that the price of gold could surge to the range of $8,000-$8,500 if private investor allocations to the precious metal increase to 4.6% from the current 3% of their portfolios, as reported by MarketWatch on Thursday.

Panigirtzoglou’s assessment is based on the notion that gold could partially replace the bond portion of a balanced portfolio, given the current economic policies. He also warned of potential risks, given that commodity trading advisers are heavily invested in gold and silver.

The analyst warned that gold and silver may face near-term pullbacks due to profit-taking or a return to average price levels.

Schiff Warns Stocks Weaker In Real Terms

This prediction comes on the heels of gold’s record-breaking performance. On Thursday, Jan. 29, gold prices were on the verge of reaching $5,600 per ounce, a psychological milestone, after a 10% surge in just four sessions.