Gold is showing signs of stabilizing after a sharp sell-off that followed its record run earlier this year, according to a CNBC-cited market analysis carried by Odaily. The report said gold had climbed to an all-time high of nearly $5,600 before reversing lower, then went on to post its worst quarterly showing since 2013 during the three months through June. Recent gains, however, are said to be repairing that technical breakdown at a fast pace.
The analysis pointed to a mix of supporting factors that could help gold move past the overhang from what it described as its worst quarter in a decade. Against that backdrop, and amid a tug-of-war between a long-term structural deficit and short-term pullback pressure, Wall Street is placing a 12-month price target at $5,400.
At the same time, the outlook is not one-directional. While the longer-term structural picture remains constructive, several analysts cautioned that gold still faces meaningful macro headwinds in the near term, along with the risk of another correction.
Gold is rebounding after a steep sell-off that followed its record run earlier this year, according to a CNBC-cited analysis published by Odaily.
The report said gold rose to an all-time high of nearly $5,600 earlier this year before facing heavy selling pressure. In the three months through June, it posted its worst quarterly performance since 2013.
Recent rebound is repairing the technical break
Gold’s current string of gains is rapidly repairing the earlier technical breakdown, the report said. A combination of factors could help the metal move beyond the weakness tied to what was described as its worst quarter in a decade.
Wall Street sets a 12-month target
With a long-term structural deficit on one side and short-term pullback pressure on the other, Wall Street is anchoring its 12-month gold price target at $5,400.
Still, the analysis also noted near-term risks. Despite a constructive long-term structural backdrop, several analysts warned that gold continues to face notable macro resistance and the potential for a short-term correction.
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