Wall Street predicts that the gold price could fall

Wall Street predicts that the gold price could fall

The gold price has risen 15.52% this year and is one of the best performing commodities on the market. It made new highs every month this year and rose sustainably in the indices. Private investors, institutional funds and central banks of developing countries have taken entry positions in the precious metal this year. However, Wall Street has now turned bearish on the gold price, indicating that the rally could be over. The XAU/USD The chart shows that the gold price hovered around $2,340 on Tuesday.

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The majority of traders who bought gold for investments at the beginning of this year are currently making a profit. It had hit an all-time high of $2,450 this month and lost some of its gains due to profit booking. Institutional funds indulged in a sell-off, pushing gold prices down to the $2,340 level this week. So will the precious metal dust itself move north on the charts or slump further? In this article, we will highlight what Wall Street thinks about the future prospects of the gold price.

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The gold price could fall, Wall Street predicts

gold price US dollargold price US dollar
Source: Finbold

Only three out of fourteen Wall Street analysts have predicted that gold prices could move further north next. The majority of them estimate that the precious metal could start to decline on the charts this year. “A rise in gold prices may initially be challenged to $2,375,” said Mark ChandlerMD of the Bannockburn Global Forex.

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“However, a stronger dollar and higher interest rates caused gold to sell off hard, reaching nearly $2,325,” he said, adding: “Support is seen in the $2275-$2300 area. We note some reports indicating that Chinese demand has declined. The coming week shows lighter numbers, and this could facilitate some consolidation. The US two-year yield extended its recovery from a recent 4.70% to almost 5%. The light calendar suggests the 5% area may hold.” he summarized.