Bank of America, Citi and Goldman Sachs See More Upside Potential for One Asset As Analysts Warn of Potential Leg Down for S&P 500: Report

Three of the largest banks in the US say one of the year’s best performing assets still has more room to run to the upside. Starting with Bank of America, head of metals research Michael Widmer says that while the precious gold may witness a short-term pullback after hitting a new record high of $3,085, he predicts the precious metal will soar toward his long-term target of $3,500, reports Bloomberg. Widmer says his bullish stance is supported by China’s recent move that allows insurance firms to invest in the precious metal. According to Widmer, China’s new program could spark a new wave of accumulation to the tune of 300 tons of gold. Meanwhile, Citi’s global head of commodities, Max Layton, believes that gold can surge to as high as $3,500 if the US economy falls short of anticipated growth. “In our base case, gold prices are expected to reach $3,200 per ounce over the next couple of months, and then potentially up as high as $3,500 an ounce, if we are in more of a concerning US growth environment than what we have in our base case.” Analysts at Goldman Sachs are also bullish on gold, predicting that the precious metal can climb higher than $3,100 as long as America’s policy direction remains undefined. “Because US policy uncertainty may support investor demand, and because we believe that central bank gold buying will remain structurally higher.” While the banks are upbeat about gold, JPMorgan and UBS are leaning bearish on the US stock market. Analysts at JPMorgan warn that the S&P 500 could go through deeper pullbacks if investors sniff a potential structural shift. Specifically, analysts say that the correction is likely 33% complete if the high-interest rate environment leads to an economic downturn. UBS chief strategist Bhanu Baweja is also bearish on the US stock market, noting that American consumers are “visibly tiring.” Baweja predicts that the S&P 500 could drop to as low as 5,300 as employment expectations, spending outlook and consumer confidence all show early signs of trouble. Follow us on X , Facebook and Telegram Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Bank of America, Citi and Goldman Sachs See More Upside Potential for One Asset As Analysts Warn of Potential Leg Down for S&P 500: Report appeared first on The Daily Hodl .