Bank of America Warns: Elevated Risk of Gold Price Correction Looms at $4,000 an Ounce

Gold Price Nears $4,000 an Ounce: Bank of America Warns of Correction In a stark contrast to the bullish predictions from Goldman Sachs and UBS, Bank of America Research has sounded alarm bells on gold, warning investors that the risk of correction is elevated as the price nears $4,000 an ounce. According to technical strategist Paul Ciana, multiple time frame technical signals and conditions indicate that the gold rally may be due for a reversal. The gold market has been on a tear in recent months, with investors and central banks seeking safe havens amid economic uncertainty. Goldman Sachs is still bullish on gold, predicting it will hit $4,300 an ounce by late 2026. Mark Haefele of UBS agrees that gold will remain an essential hedge for investors. However, Bank of America Research's Ciana cautions that the technical indicators are flashing warning signs. "Risk of correction elevated," he wrote in a market analysis on Monday. The analysis highlights multiple time frame technical signals and conditions that suggest the gold rally may be due for a reversal. The current government shutdown has raised questions about whether anything can shut down the gold rally. According to Ciana, the answer is yes. "A variety of multiple time frame technical signals and conditions are flashing warning signs," he wrote. Gold's recent surge has been driven by investors seeking safe havens amid economic uncertainty. The metal has been on a record-breaking run, with prices nearing $4,000 an ounce. While some analysts predict that gold will continue to rise, others warn of a correction. Background and Context The gold market has been volatile in recent months, with prices fluctuating wildly due to various factors such as economic uncertainty, central bank policies, and investor sentiment. The current government shutdown has added to the uncertainty, raising questions about whether it can impact the gold rally. Additional Perspectives While Bank of America Research's warning may seem ominous, other analysts remain bullish on gold. Goldman Sachs predicts that gold will hit $4,300 an ounce by late 2026, while Mark Haefele of UBS agrees that gold will remain an essential hedge for investors. Current Status and Next Developments The gold market remains volatile, with prices continuing to fluctuate wildly. As the government shutdown continues, investors are closely watching the technical indicators to gauge whether the gold rally is due for a correction. According to Ciana, multiple time frame technical signals and conditions suggest that the risk of correction is elevated. In conclusion, while some analysts predict that gold will continue to rise, others warn of a correction. As the market remains volatile, investors are advised to closely monitor the technical indicators to gauge whether the gold rally is due for a reversal. *Reporting by Fortune.*