‘Risk of correction elevated’: BofA rings alarm bells on gold as price nears $4,000 an ounce
Gold was in a recent rupture, as he set several record levels with investors and central banks seeking a safe haven in a business climate full of uncertainty, as he recently approached the level of $ 4000.
like luck According to the Bank of Goldman Sachs, it is still upward, and it calls for gold to reach $ 4,300 an ounce by late 2026, while Mark Heville agrees from UBS that gold will remain a basic hedge. Deutsche Bank believes that the height of gold shows that investors are afraid in their depths.
Bank of America’s research was not very optimistic, as technical expert Paul Senna wrote on Monday that investors should be careful. He wrote in a market analysis that seeks to answer the big question amid another government closure: “The risk of correction is high”, “Can anything stop the height of gold?” The answer is yes, of course. Siana pointed out that “a variety of signs and technical conditions with multiple time frames warns against exhausting the upward trend.”
Siana admitted that while the pressure of the macroeconomic and geopolitical tensions has directed the “safe haven” flows to gold, the path has become fraught with risks with the enlargement of speculative centers. Siana emphasized that the last rise reflects the increasingly purchasing purchase of momentum, not the basic basics, which increases the risk of a severe reflection in the event of morale or the surprise of the monetary policy of the market. He cited the extended graphic fees, “purchasing saturation” signals, and the decline in positive spacing, warning that the markets may witness a correction if any supportive factors are weakened or imposed.
Long history of gold rises
Gold achieved many budget goals for Ciana, the last of which was $ 3,880. The “relevant peak” may be nearly 20 % over 20 % of its simple moving average for 200 days from Monday, with major peaks in August 2020, August 2011, March 2008 and May 2006 when prices were about 25 % higher than this average.
He pointed out that since it reached its lowest levels in 2015, gold rose by 85 % in 2020, corrected by approximately 15 % in 2022 and then increased by another 130 %. While the warning of more rise over the next two years is certainly possible, and this prosperity is smaller than the seventies and the first decade of the twenty-first century, Sana sees a “rhyme” with many “corrections in the middle of the road” in the years 2020-2022, 2007-2008, and 1975-1976.
Looking at the nineteenth century, Siana indicates that the gold boom in the period 1862-1864 increased by 156%, but then abandoned this progress in the depression that followed. He added that the periods of prosperity since the thirties have not completely shrink, and it is looking at the history book he wrote.
Or is there much more space for operation?
It is a completely different perspective even within the Bank of America, where a different team in the bank analyzed the numbers several weeks ago to say that gold may not be close to reaching its borders. The global commodity research team, led by Michael Widmer, said that the rise of gold is about $ 4,000 was not surprising. With the inflation rate exceeded 2% and facilitating the Federal Reserve for Monetary Policy, gold “has never retreated” in such a scenario since 2001, the Widader team claimed on September 15.
Widmer pointed out that the total market value of the global gold sector has inflated by the solutions of that point last month to more than 550 billion dollars, or nearly twice the sums of which were seen in 2011 and 2020, and more than eight times the lowest level in the 2016 cycle, and more than three times the lowest level for the last session in 2022. However, when looking at it from a different perspective, as a share of the total global stock market, the metal is “Much lower” than its previous level, as written and destroyed. The sector’s share was 0.39% of the global market value, and it is still much lower than its highest levels in 2011 of 0.71%.
However, it seems that Widmer and Sana agrees with the speed of gold. After all, the target price for Widmer, $ 4000 was $ 4000 for 2026, and closed gold on Monday at 3984.40 dollars.
2025-10-06 21:24:00
