Gold Prices Attempt Recovery after Historic Black Friday Meltdown

The Warsh Pivot Impact

The transition from Jerome Powell to Kevin Warsh is being viewed as a 'regime shift' for bullion. Warsh's reputation as an inflation hawk has strengthened the dollar, raising the opportunity cost for non-yielding assets. However, today's bounce suggests significant physical demand remains near the $4,500 support level.

2026 Price Outlook

Despite the recent volatility, J.P. Morgan Global Research maintains a long-term bullish outlook for 2026, forecasting an average price of $5,055 by Q4. Central bank diversification away from fiat currencies remains the primary structural driver for the year.