Analysts: With precious metals losing some of their geopolitical premium, gold prices still have a chance to reach $5,000.
TL;DR
Analyst Edward Meir notes that easing Middle East tensions have reduced gold's geopolitical premium, causing a pullback. However, he still believes gold prices could reach $5,000 this year, despite potential significant corrections.
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PANews reported on January 17th that, according to Jinshi, Marex analyst Edward Meir stated, "After several weeks of significant gains, commodities as a whole have retreated due to some profit-taking. Easing tensions in the Middle East have also caused gold and other metals, especially silver, to lose some of their geopolitical premium." With the easing of protests in Iran, US President Trump adopting a wait-and-see approach, and Russian President Putin intervening, geopolitical tensions appear to have eased. Meir said, "I still believe that gold prices have a chance to reach $5,000 at some point this year, but this will be accompanied by a significant pullback."