Overview

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Gold prices have seen sharp declines before. Between 20, gold fell nearly 45% from its peak of $1,920 per ounce to $1,050 per ounce due to a strong dollar Only three experts, representing 21%, expected to see gold prices climb higher next week, while eight analysts, fully 57%, predicted a price decline. Another three This week, 14 analysts participated in the Kitco News Gold Survey, with Wall Street’s bullish sentiment returning to Earth after a few weeks in the stratosphere. 10 experts Wall Street analysts have recently been boosting targets to catch up to rising gold prices. For example, Deutsche Bank targets $3,700 in 2025, up from $2,900 previously. Many on Wall Street expect the rally to continue well into 2025 and well past the $3,000 level. Overnight, Goldman Sachs raised its year-end gold price forecast for 2025 to This significant drop was followed by a rally on Thursday that saw gold reach a weekly high of $2,064.28, only to be pushed down once again on Friday morning due to a Gold has outperformed the broader U.S. stock market this year, and Wall Street is turning more bullish on the precious metal.

Wall Street Predicts Gold Prices Could Begin to Decline: What's Next?

Is the gold rally coming to an end? While many on Wall Street expect the rally to continue well into 2025 and well past the $3,000 level, recent sentiment suggests a potential shift. This week, 14 analysts participated in the Kitco News Gold Survey, with Wall Street’s bullish sentiment returning to Earth after a few weeks in the stratosphere.

Overnight, Goldman Sachs raised its year-end gold price forecast for 2025. 10 experts Wall Street analysts have recently been boosting targets to catch up to rising gold prices. For example, Deutsche Bank targets $3,700 in 2025, up from $2,900 previously. Despite these long-term bullish forecasts, short-term indicators point to potential headwinds.

Why the Potential Dip?

Only three experts, representing 21%, expected to see gold prices climb higher next week, while eight analysts, fully 57%, predicted a price decline. Another three analysts remained neutral. This shifting sentiment is driven by several factors, including economic data and dollar strength.

Gold prices have seen sharp declines before. Between 2011 and 2015, gold fell nearly 45% from its peak of $1,920 per ounce to $1,050 per ounce due to a strong dollar. A similar scenario could unfold if the dollar continues to strengthen.

Recent Price Volatility

Gold has outperformed the broader U.S. stock market this year, and Wall Street is turning more bullish on the precious metal. This significant drop was followed by a rally on Thursday that saw gold reach a weekly high of $2,064.28, only to be pushed down once again on Friday morning due to a stronger-than-expected jobs report.

What to Expect Moving Forward

While the long-term outlook for gold remains positive according to some analysts, investors should be prepared for potential short-term volatility and a possible decline in prices. Keeping a close eye on economic indicators and Wall Street sentiment will be crucial in navigating the gold market in the coming weeks and months.

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