Wall Street Remains Bullish on Gold Despite Recent Pullback

Wall Street remains bullish on gold despite its recent pullback and sees more upside ahead for the precious metal.

Gold’s price fell as much as 8% earlier this week, its biggest one-day drop in more than a decade. The pullback came after a blistering rally that saw gold’s price rise more than 60% on the year. The sudden reversal in recent days has led many investors to reconsider their holdings of the yellow metal.

But Wall Street seems unfazed by the recent plunge in gold’s price. Commodities analysts at Goldman Sachs (GS), for example, just reiterated their 2026 price target of $4,900 per ounce, and said they expect central banks around the world to continue filling their vaults with gold over the next year.

“The speed of recent ETF inflows and client feedback suggest many long-term capital allocators — including sovereign-wealth funds, central banks, pension funds, and both private wealth and asset managers — are planning to increase their exposure to gold as a strategic portfolio diversifier,” wrote Goldman Sachs in a note to clients.

Price to Double?

JPMorgan Chase (JPM) goes a step further than Goldman, saying that it expects the price of gold to more than double over the next three years as investors increasingly use it as a hedge against volatile stocks and other risk assets.

JPMorgan also dismisses the recent drop in gold’s price to short-term profit-taking rather than retail investors exiting gold exchange-traded funds (ETFs) en masse or central banks unwinding their holdings of the precious metal.

“Retail investors bought equities and gold simultaneously and shunned longer-dated bonds, i.e. their traditional asset to hedge equity risk,” writes JPMorgan in its own note to clients.

Is the SPDR Gold Shares ETF a Buy?

The SPDR Gold Shares (GLD) exchange-traded fund (ETF) tracks the spot price movements of bullion. Its price has risen 27.54% in the last three months as geopolitical uncertainty and market risks have grown.