Odaily News Analyst Karishma Vanjani said Wall Street is in a gold rush, but investors should be careful. JPMorgan Chase and Goldman Sachs recommend holding gold, BNP Paribas just raised its gold price forecast, and BlackRock has been recommending buying gold to diversify portfolios for months. So far, these recommendations have been correct. But it is not without risks. First, gold is arguably overvalued, given that it has been in a bull market since September 2022. This raises the possibility that gold prices have largely reflected the potential of this period, so it is prone to a correction. These gains may attract early investors to sell to lock in profits. Second, gold may also struggle if the US government's efforts to reform the federal government prove to be successful. Third, economic growth is negatively correlated with gold. When the economy is booming, investors tend to favor riskier assets such as stocks rather than gold, which has lost its appeal.