Gold Selloff and Rebound | Why Banks Still See $6,000 Ahead

Gold dropped from $5,500 to $4,400 in a matter of days — a 20% selloff that made headlines and shook out nervous hands. But after the dust settled, gold staged a rebound, and the underlying drivers of demand haven’t gone anywhere.

📉 What caused the pullback?
Analysts point to fast-money traders taking profits at month’s end and banks hedging against sudden declines. Others call it a much-needed reset after a dizzying rally that pushed costs higher for industrial users.

But Adrian Ash, director of research at BullionVault, put it bluntly: “The short answer is I have no idea. Nobody knows. I’ve been in the market for 20 years. I’ve never seen anything quite like this market.”

🔮 What Wall Street is watching
Central bank purchases and strong ETF inflows pushed gold to record highs — and despite the pullback, big banks aren’t backing off. Deutsche Bank recently reiterated its $6,000 target. JPMorgan now sees that level coming in the second half of the year, citing a renewed burst of investor demand.