However, J.P. Morgan expects that gold prices might even jump to $800, if Iran's nuclear issue heated up and oil hit $100 a barrel.
"For gold, event risks are surfacing at a time when mining supply was already inadequate and jewellery demand firming. Fundamentals alone justify prices near $600 by year-end, while a meltdown in Iran/spike in crude could see $800 gold," the J.P. Morgan report said.
J.P. Morgan said the gold price was likely to increase from a favourable currency environment, with the dollar seen range-bound in the first half of the current year, while weakening later.
"The recent pullback in gold from its record highs should not be interpreted as a peak, rather we see it as a stage in a longer rally," J.P. Morgan said.
"Gold's bullish hues are based on a stagnant supply profile, rising investor interest in real assets and the influx of petro-dollars from the Middle East," the report said.
Source: J.P. Morgan sees gold near $600/oz by year-end
Bill Murphy of Gata.org had this to say about the J.P. Morgan Report:
"After missing the move up for many years, Morgan turns bullish and calls for $600 gold by the end of the year, or a roaring $46 per ounce from here. Only world shaking events could take gold to its old high. What hogwash!
*No mention of investment demand, only jewelry.
This sort of drivel is why GATA’s Gold Rush 21 DVD is so critical. The most important aspect of the gold market at the moment is the short position and the increasing focus on gold as money. Neither is discussed by Morgan, Barclays or any other report on Planet Wall Street.
What is constructive about this report is it signals how dire the situation is for The Gold Cartel. They are doomed and they know it. This report tells me these bums know their scheme is falling apart. This is nothing more than a cover their butt drill."