If you’re underweight gold, some of the biggest banks on Wall Street have a message: Buy the dip. Gold futures dropped more than 11% on Friday to settle well below the key $5,000-an-ounce level after President Donald Trump nominated Kevin Warsh to succeed Jerome Powell as the next Federal Reserve chair. Choosing Warsh appeared to relieve concerns about the central bank’s independence, but it also took a lot of the air out of the recent precious metal boom that drove gold to all-time highs. Investors appear to be easing back into gold after last week’s drop. Futures tied to the precious metal briefly traded higher on Monday. They were last off around 0.5% but were still well off their overnight lows. JPMorgan and Deutsche Bank see the recent decline as a buying opportunity, calling for even more upside ahead. @GC.1 5D bar Gold futures 5-day chart “Even with the recent near-term volatility, we believe longer-term rally momentum will remain intact and we remain firmly bullishly convicted in gold over the medium-term on the back of a clean, structural, continued diversification trend that has further to run amid a still well-entrenched regime of real asset outperformance vs paper assets,” wrote JPMorgan strategist Gregory Shearer. Shearer also raised his year-end target on gold to $6,300 an ounce. That’s 33% above where gold traded early Monday. “Gold remains a dynamic, multi-faceted portfolio hedge and investor demand has continued to come in stronger than our previous expectations,” Shearer wrote. Michael Hsueh of Deutsche Bank also thinks gold will resume its upward trajectory. He reiterated his 2026 target of $6,000 per ounce, signaling about 26% upside. “Gold’s thematic drivers remain positive and we believe investors’ rationale for gold (and precious) allocations will not have changed. The conditions do not appear primed for a sustained reversal in gold prices, and we draw some contrasts between today’s circumstance and the context for gold’s weakness in the 1980s and 2013,” Hsueh wrote to clients.