The move leaves gold<\/a> \u2014 down roughly 21% from its late-January peak of $5,594.82 \u2014 firmly in a bear market.<\/p>\n For many strategists, the recent slump reflects short-term dislocations rather than any shift in gold’s underlying fundamentals. Persistent geopolitical risks, strong central bank demand and the prospect of a weaker U.S. dollar continue to underpin a structural bull case for the metal. Gold is traditionally seen as a safe haven by investors during times of instability.<\/p>\n “We are sticking with $10,000 by the end of the decade,” Ed Yardeni, president of Yardeni Research told CNBC via email, even as he lowered his year-end forecast to $5,000 per ounce from $6,000 \u2014 which is still up around 15% from current levels.<\/p>\n The latest leg lower came as investors unwound positions amid a stronger U.S. dollar and tentative signs of easing geopolitical tensions after U.S. President Donald Trump<\/a> said on Monday he had ordered a five-day pause on planned strikes against Iran’s energy infrastructure.<\/p>\n The U.S. dollar has been strengthening, which might have triggered profit-taking in gold, said market participants.<\/p>\n Stock Chart IconStock chart icon Gold prices since the start of the year.<\/p>\n The dollar index has strengthened around 3% since the start of the war on Feb. 28.<\/p>\n Despite the near-term weakness, strategists broadly view the selloff as an opportunity rather than a turning point.<\/p>\n Justin Lin, investment strategist at Global X ETFs, said his base case for gold remains $6,000 per ounce by year-end, describing the recent drop as “a compelling entry point for investors.”<\/p>\n “The sell-off appears driven by a combination of short-term sensitivity to higher interest rates, portfolio rebalancing amid equity market weakness, and a degree of complacency around the ongoing conflict in Iran,” Lin said via email.<\/p>\n Crucially, Lin emphasized that his bullish outlook does not depend on war-related risk premia.<\/p>\n “Rather, it is built upon the broader backdrop of persistent geopolitical uncertainty, continued central bank demand, and sustained inflows from Asian gold ETF investors,” he said. <\/p>\n That structural demand, particularly from emerging market central banks seeking to diversify reserves, is expected to provide a floor under prices. Lin added that there is a “high likelihood” central banks step up purchases following the recent selloff, helping stabilize the market.<\/p>\n![\"hide](\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\")
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