Gold has taken a $70 nosedive after hitting an all-time high of $2431 earlier today. The spike-and-reversal has come with increasing angst in broad markets and a nearly 2% decline in the Nasdaq. The market is concerned about a war in the Middle East.
Goldman Sachs earlier today hiked its year-end gold price target to $2700 from $2300, noting that momentum and retail haven't yet piled in.
"With Fed cuts still a likely catalyst to soften the ETF headwind later in the year, the right tail risk from the US election cycle and fiscal setting, gold's bullish skew remains clear," Goldman wrote in a note.
"Asian retail demand, led by China, has been driven by fear over economic stability and currency depreciation, particularly tied in China to the property sector," GS writes.
They see risks to gold including peace, better China growth and a significantly hawkish Fed shift.
