The recent gold price rally looks unsustainable and it's time to sell, Societe Generale analysts say, taking an opposite view to rival Deutsche Bank that only last week advocated buying the precious metal.
Gold prices have rallied 20 percent just two months into 2016 as investors seek refuge from the turbulence in developed equities and emerging markets.
The fear is also prompting investors to trim expectations of further interest rate hikes from the U.S. Federal Reserve this year but the reality is likely more upbeat, according to SocGen.
"Our economists remain confident that the recent financial market turmoil and slowdown in emerging markets are unlikely to cause a recession in the U.S. If they are right, then the market should gradually start pricing in a high probability of one rate hike this year followed by more next year as the U.S. labour market is becoming tight," SocGen analysts wrote in a note Monday.