Analyst: Wall Street sets off a gold rush, but investors should remain cautious

On March 14th, analyst Karishma Vanjani said that Wall Street is currently experiencing a gold rush, but investors should be cautious. JPMorgan and Goldman Sachs advise holding onto gold, while BNP Paribas has just raised its price forecast for gold. For months, BlackRock has been recommending buying gold to diversify portfolios, and so far, these recommendations have been correct. However, this is not without risks. Firstly, considering that gold has been in a bull run since September 2022, it can be said that gold is overvalued. This increases the possibility that the price of gold has largely reflected the potential of this period, making a pullback likely. These profits may attract early investors to sell to lock in profits. Secondly, if the US government’s efforts to reform the federal government are successful, gold may also face challenges. Additionally, the rise in the economy is negatively correlated with gold. When the economy is booming, investors tend to favor riskier assets such as stocks, rather than gold, which loses its appeal.