Bank of America has turned more cautious on gold, warning that the metal’s powerful rally may be nearing exhaustion as prices approach the $4,000 per ounce mark.
Gold has surged nearly 50% so far this year, fuelled by
- President Donald Trump’s tariffs
- his attacks on Federal Reserve independence
- heavy central bank buying that has underpinned global demand.
In a note to clients Monday, BofA analysts said the rally shows signs of “uptrend exhaustion”, suggesting that gold could pause or correct in the fourth quarter after its record-breaking run.
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BofA’s warning could temper bullish sentiment after a 50% year-to-date rally in gold. A near-term correction could trigger profit-taking in commodities and related ETFs, though longer-term fundamentals like central bank demand remain supportive.
