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Wall Street abandons ship after gold sinks below $3,900/oz, Main Street maintains bullish majority bias as midterms, payrolls loom
Kitco • • business
Key Points:
- Gold prices declined sharply over the week, dropping from above $4,000 to a yearly low near $3,870 per ounce, driven by the Federal Reserve's hawkish stance, strong U.S. economic data, and a technology-led equity selloff.
- Despite an early-week recovery fueled by softer Treasury yields and a weaker dollar, gold fell after the Fed's decision to hold interest rates steady, with expectations of further tightening reinforced by robust GDP and inflation figures.
- Market sentiment turned bearish among Wall Street analysts, with 63% predicting further declines, while Main Street investors remained more optimistic, with 53% expecting prices to rise next week.
- Experts warn that gold and silver may face a deeper correction into early next year, potentially falling to around $3,000 for gold and the high $30s for silver, unless there is a clear shift toward easing monetary policy.
- Upcoming U.S. midterm elections and key economic data releases, including nonfarm payrolls, will be critical for gold's direction, with potential geopolitical risks and inflation trends also influencing market dynamics.
