Gold Prices Fall, But Banks Predict Year-End Rebound to $4,500

Gold prices fell to $4,157 an ounce on Monday, down 2.8% from the previous day. This drop has raised concerns about a potential rout in gold, but bank forecasts and betting markets still favor a year-end recovery.

The big banks mostly expect a rebound, with year-end targets clustering between $4,500 and $4,900. Goldman Sachs is forecasting $4,900, while J.P. Morgan predicts $4,500, and HSBC is targeting $4,750.

UBS sees pullbacks toward $4,000 as a buying opportunity rather than a reversal signal. Nick Cawley, contributing analyst at Solomon Global, also suggests that longer-term investors may see value around $4,000.