Gold analysts are the most bearish since 2002, according to the London Bullion Market Association.
The headline might overstate the bearish sentiment because the average price forecast is $1240, which is virtually equal to today’s spot price. The FT explains:
Explaining their caution this year, analysts cited a possible strengthening of the US dollar, an oversupply of gold and potential further ETF sales. Weak inflationary pressure was another concern, since gold is viewed by investors as an inflation hedge.
This is more a case of the bulls growing more cautious than a spike in bets against gold.
