J.P. Morgan Shifts From Gold to Copper as Fed Hawkish Pivot Deepens Market Pause

According to Gregory Shearer, head of Base and Precious Metals Strategy at J.P. Morgan, the Federal Reserve's recent hawkish communications have turned a temporary pause in gold's structural rally into a prolonged freeze. "The hawkish Fed has really turned this pause in the structural bullish gold story into a bit of a deeper freeze," Shearer said, noting that persistent rate-hike expectations are dampening investor engagement with the precious metal.

Meanwhile, J.P. Morgan is now focusing on copper as the most attractive near-term opportunity. Shearer cited strong structural fundamentals, including expected momentum in China and constrained mine supply, as key drivers. He forecast copper prices could reach around $15,000 per metric ton, with a critical factor being a U.S. tariff review on refined copper that could maintain import attractiveness and sustain tight market conditions.