Analysts reset gold forecasts as prices hit wall

Core Insights - Gold prices have reached all-time highs in 2025, driven by economic concerns, job losses, and the trade war, with a year-to-date increase of over 50% and a 20% surge since April [1][4] - The performance of gold has significantly outpaced stock market returns, with the S&P 500 and Nasdaq rising 15% and 19% respectively [1] - Gold has also outperformed Treasury bonds, which gained about 8% due to Federal Reserve interest rate cuts [2] Economic Context - The rise in gold prices is supported by fears of a potential reckoning in the U.S. economy, despite GDP growth above 3% in the second and third quarters [4] - Job cuts reported by Challenger, Gray and Christmas totaled 946,426 through September, marking a 55% year-over-year increase [5] - The unemployment rate reached 4.3% in August, the highest since 2021, with private data indicating worsening conditions in September [6][7] Market Dynamics - Recent concerns have emerged regarding the sustainability of gold's rally, particularly after a significant drop of over 6% in a single day, leading to a decline of more than 5% over the past five days [3] - The unique nature of gold as a stored asset makes it susceptible to volatile price movements based on economic expectations [3]