Analyst: Wall Street is experiencing a gold rush, but investors should remain vigilant

On March 14th, Jinshi Data reported that analyst Karishma Vanjani stated that Wall Street is experiencing a gold rush, but investors should be cautious. JPMorgan Chase and Goldman Sachs recommend continuing to hold gold, while Société Générale has just raised its price forecast for gold, and BlackRock has been advising the purchase of gold to diversify portfolios for several months. So far, these recommendations have been correct. However, this is not without risks. First, considering that gold has been in a bull market since September 2022, it can be said that gold is overvalued. This increases the possibility that gold prices have largely reflected the potential of this period, making it susceptible to a correction. These gains may attract early investors to sell to lock in profits. Secondly, if the U.S. government's efforts to reform the federal government prove successful, gold may also struggle. Furthermore, economic growth is negatively correlated with gold. When the economy is booming, investors tend to favor riskier assets like stocks, rather than the less attractive gold