“The risk of correction is high”: Bofa rings alarm bells on gold, where the price approaches $ 4000 an ounce

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Gold has been on a rupture recently, as it has achieved several record levels recently Close to the $ 4000 signWhere investors and central banks seek a safe haven amid the climate of work full of uncertainty.

like luck I mentionedGoldman Sachs is still optimistic, calling for gold to reach $ 4,300 an ounce by ounces in late 2026, while Mark Hevi from UBS agrees that gold will remain a basic hedge. Deutsche Bank believes The gold rally indicates that investors in their deep are afraid.

Bank of America Research is not thorny, with technical strategies Paul Siana writing on Monday so that investors must be careful. He wrote in a market analysis that seeks to answer the big question amid another government closure: “The danger of correction”, he wrote in a market analysis that seeks to answer the big question amid another government closure: “Can anything can close the gold march?” The answer is yes, of course. “A variety of technical signals and multiple time conditions warns against exhausting the upward trend,” said Sana.

Ciana admitted that although total economic pressures and geopolitical tensions may turn “safe haven” flows into gold, the path has become risky with enlarged speculative situations. The last boom increasingly reflects the purchase of momentum instead of the basic basics, stressed Ciana, and raised the risk of sharp reflection that must turn or a monetary policy in the market. He cited extended plans, “fame” signals, and a positive difference, warning that the markets could see a correction if any supportive factors are weakening or reverse.

Long history of golden gatherings

Gold achieved many of the ups of the upcoming Ciana, the latest of which is $ 3880. “The peak may be close” because gold was trading about 20 % higher than the simple moving average for 200 days starting on Monday, with the main peaks in August 2020, August 2011, March 2008, and May 2006 when the prices were approximately 25 % higher.

Since reaching its lowest level in 2015, he indicated that gold rose about 85 % until 2020, was corrected about 15 % until 2022, then another 130 % gathered. While the warning of this upward trend over the next two years is definitely possible, and this mutation is smaller than the seventies and alpins of the last century, Siana sees a “rhyme” with “corrections in the middle of the road” in 2020-22, 2007-2008, and 1975-76.

Siana grows up to the nineteenth century, indicating that the gold mutation from 1862-1864 gained 156 %, but then gave up this progress in a bust of this. He added that the mutations since the thirties of the twentieth century were not completely reduced, as it was seen as a book of history.

Or is there more space for operation?

It is a completely different perspective from even Bofa, with a different team in the bank that breaks the numbers several weeks ago to say that gold may not be anywhere near its borders. The basic commodity research team led by Michael Widmer argued that Gold’s rise was about $ 4,000, it was not surprising. With an enlarged 2 % enlarged and federal reserve dilution policy, gold has not been “decreased” in such a scenario since 2001, the Widmer team argued on September 15.

Widmer pointed out that the total market value in the global gold sector has increased by this point last month to more than 550 billion dollars, which is nearly twice the summits seen in 2011 and 2020, more than eight times the 2016 session, and more than three times the last session in 2022. This sector reached 0.39 % of the global market value, is still much lower than the rise of 2011 of 0.71 %.

As Widmer and Ciana seem to agree, though, it will be the speed of gold. Widmer’s price was $ 4,000 for 2026, after all, and gold on Monday ended with $ 3,984.40.

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