Gold Falls Into Technical Bear Market? Wall Street Divided, Bulls Say It Could Be a "Golden Pit" on the Path to $10,000

Mars Finance News: On March 24, gold prices recently experienced a sharp correction, triggering market turbulence. Since the peak around $5,594 in January, spot gold has fallen approximately 21%, entering a technical bear market, with short-term bearish sentiment dominating. Market analysis suggests that this decline is mainly driven by liquidity contraction and a strengthening dollar. Since the escalation of conflicts in the Middle East, the US dollar index has risen about 3%, coupled with investor position closures and portfolio rebalancing needs, prompting funds to withdraw from high-liquidity assets like gold. Additionally, President Trump’s statement delaying strikes on Iran’s energy facilities temporarily eased geopolitical tensions and weakened the safe-haven demand for gold. Despite the weak short-term trend, some Wall Street institutions and strategists remain bullish in the long term. Renowned economist Ed Yardeni stated that the goal of reaching $10,000 per ounce by the end of this decade remains unchanged; most institutional views also believe that central bank gold purchases, geopolitical uncertainties, and potential dollar weakness will continue to support prices in the medium to long term. Institutions including Global X point out that this correction is more of a “deleveraging + short-term mismatch” rather than a fundamental reversal, and see the current range as an attractive allocation window. Standard Chartered predicts that as the deleveraging phase ends and monetary policy expectations shift, gold prices are expected to gradually recover in the coming months. Overall, under the intertwined influences of inflation expectations, central bank demand, and the dollar cycle, gold may remain under pressure in the short term, but market divergence on its medium- to long-term structural bull market is increasing.