Last Updated on February 2, 2026 by Deon
The Great Reset: J.P. Morgan Sees an Opportunity in the Chaos
The headlines scream “blood in the streets” following Gold’s historic 30% fall from its all-time high — but according to J.P. Morgan Private Bank’s macro crew, the best advice may well be: Calling all believers,hold your horses .
The recent slide to $4,695 isn’t the end of the bull market — it’s a healthy “cleansing” for a market that had become unhinged, according to Yuxuan Tang, the bank’s Asia Head of Macro Strategy.
Flushing Out the ‘Irrational’
Tang characterizes the rally that drove it to the $5,626 record as having “irrational elements.” When prices move as fast as they have been moving with many stocks in these markets, speculators looking to make a quick buck are lured into the fray.
The Correction: This sharp pullback has essentially “flushed out” those weak-handed speculators.
The Reality Check: Even after that big drop, Gold is still up 13% this month alone. In any other year a 13% monthly gain would be seen as a triumph; it only feels like defeat because last Thursday was so extreme.
The Warsh Factor: Perception vs. Policy
Some traders said the crash was due to Kevin Warsh being named as the next Fed Chair. Tang, though, says that the underlying environment hasn’t really changed.
Fiscal Indiscipline: J.P. Morgan does not see the long-term trend of fiscal discipline globally (governments spending and borrowing) to be reversed irrespective of who is sitting in the Fed Champions chair.
Upbeat Backdrop: The reasons investors buy gold — as a bet against currency devaluation and geopolitical turmoil — are as strong as ever.
New Targets: Aiming for $6,150
With a grandiose display of confidence, J.P. Morgan Private Bank actually lifted its year-end gold target to $6,150 an ounce.
The Range: The bank now expects trading at a range of $6,000 to $6,300.
Still Not Crowded: Despite what you may have heard, positioning the institutions in gold remains “nowhere near crowded”, Tang writes. A number of the biggest funds are just starting to diversify their reserves into the metal.
The Verdict: The ‘Golden Era’ of the Game is Only Just Beginning
J.P. Morgan is sending a very clear message: The “Flash Crash” of 2026 was simply a technical reset, and not evidence of any fundamental shift. Spot gold is now trading at just under $4,700 and the bank views this as a normal level before the next leg of super-cycle starts.
The big banks’ message to long-term investors appears to be: Tune out the noise, keep your eye on the $6,000 level and consider Monday’s drop a bit of a new lease on life.
