Gold Prices May Drop 38% Despite Hitting All-Time High: US Analyst Warns

Gold has long been seen as a safe haven in times of economic uncertainty, and recent months have pushed it to unprecedented highs. But a new warning from a top US financial analyst suggests that the shiny metal’s rally may soon come to a dramatic end—with prices potentially crashing by as much as 38%.

The prediction comes at a time when gold prices are soaring, buoyed by inflation fears, geopolitical tensions, and investor anxiety. However, according to the analyst, the market is now showing signs of overextension, and a reversal may be on the horizon.

“Gold’s current valuation is not sustainable,” the analyst stated during a recent interview. “Much of its rise has been driven by speculative buying rather than fundamentals. When that bubble bursts, we could see a correction of up to 38%.”

The forecast is based on historical trends where sharp surges in gold have often been followed by steep corrections. In particular, a shift in global interest rates, stronger-than-expected economic data, and a rebound in equities could prompt investors to exit the gold market in favor of higher-yielding assets.

The warning has sparked debate among market experts. Some agree that a correction is overdue, while others believe strong central bank buying and ongoing global instability could keep prices elevated in the medium term.

For investors, the news serves as a reminder of gold’s volatility despite its reputation as a safe investment. Experts advise diversification and caution in the face of potential market corrections.

If the analyst’s prediction proves accurate, the implications could ripple through the commodities market and significantly affect portfolios with heavy exposure to gold.

As the world watches the metal’s next moves, one thing is certain—investors are in for a turbulent ride.