Financial institution of America has turned extra cautious on gold, warning that the metallic’s highly effective rally could also be nearing exhaustion as costs strategy the $4,000 per ounce mark.
Gold has surged practically 50% up to now this yr, fuelled by
- President Donald Trump’s tariffs
- his assaults on Federal Reserve independence
- heavy central financial institution shopping for that has underpinned world demand.
In a be aware to shoppers Monday, BofA analysts stated the rally exhibits indicators of “uptrend exhaustion”, suggesting that gold may pause or appropriate within the fourth quarter after its record-breaking run.
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BofA’s warning may mood bullish sentiment after a 50% year-to-date rally in gold. A near-term correction may set off profit-taking in commodities and associated ETFs, although longer-term fundamentals like central financial institution demand stay supportive.