Gold prices have increased by 15.52% year-to-date and are among the top-performing commodities in the market. It printed new highs every month this year and sustainably scaled up in the indices. Retail investors, institutional funds, and central banks of developing countries have taken entry positions into the precious metal this year. However, Wall Street has now turned bearish on gold prices indicating its rally could be over. The XAU/USD chart shows gold prices hovering around the $2,340 mark on Tuesday.
Also Read: 10 U.S. Sectors To Be Affected if ASEAN Ditches the Dollar
The majority of traders who purchased gold for investments early this year are currently in profit. It had reached an all-time high of $2,450 this month and shed a portion of its gains due to profit bookings. Institutional funds indulged in sell-offs that made gold prices fall to the $2,340 level this week. So, will the precious metal dust itself move north in the charts or slump further? In this article, we will highlight what Wall Street thinks about gold prices’ future prospects.
Also Read: U.S. Dollar Gets Buyers Against Japanese Yen Despite the Dip
Gold Prices Could Begin To Dip, Predicts Wall Street
Only three out of 14 Wall Street analysts have forecasted that gold prices could head further north next. The majority of them estimate that the precious metal could begin to decline in the charts this year. “A bounce in gold may be challenged initially in front to $2,375,” said Marc Chandler, MD of the Bannockburn Global Forex.
Also Read: US Dollar: Analyst Calls De-Dollarization a ‘Bad Joke’
“However, a stronger dollar and higher rates saw gold sell off hard and reach nearly $2,325,” he said and added, “Support is seen in the $2275-$2300 area. We note some reports suggesting China’s demand has slackened. The week ahead sees lighter data, and this could facilitate some consolidation. The US two-year yield extended its recovery from 4.70% recently to nearly 5%. The light calendar suggests that the 5% area may hold,” he summed it up.