[Institution: Gold Risk-Reward Structure Reverses, $500 Downside for $1,500 Upside Potential] BlockBeats News, July 22, Sameer Samana, Chief Global Equity and Real Asset Strategist at Wells Fargo, stated that after gold retreated more than 20% from its historical high in January, the market's risk-reward structure has shifted. The downside for gold is narrowing, while its long-term upside potential continues to attract investors. Samana noted that the market has already priced in most of the Federal Reserve's rate hike risks. If federal funds rate futures have accounted for expectations of two to three more rate hikes, then gold prices have largely reflected a similar degree of tightening pressure. The current market focus should be on whether there will be unexpectedly large rate hikes in the future, though this possibility is not high. Recently, gold has been under pressure primarily due to rising oil prices, heightened expectations of Federal Reserve tightening, and increases in real yields. However, Samana believes market sentiment may have become overly pessimistic, with most bearish factors already priced in. He pointed out that gold may still continue to dip in the short term, as technical indicators have yet to confirm a bottom, with the price potentially falling to $3,500. Meanwhile, the $4,500 to $4,900 range could act as a resistance zone for rebounds, as some investors who bought at higher levels may choose to exit at a loss. From a long-term perspective, Samana believes the upward trend for gold remains intact. He stated that an economic slowdown could prompt the Federal Reserve to cut rates again and encourage policymakers to adopt more accommodative measures, thereby providing fresh upward momentum for gold. The Wells Fargo Investment Institute previously projected that gold prices could rise to $5,300 to $5,500 per ounce by the end of 2026 and further increase to $5,800 to $6,000 per ounce by the end of 2027. [Original Link]