Bank of America's technical strategists have issued a warning that the current correction in gold prices may continue, potentially mirroring past bear markets following major surges in 1980 and 2011. The strategists suggest a phased buying approach, recommending full allocation only when prices fall to the $3,450 to $3,250 range.
The analysts highlighted several bearish indicators, including a death cross pattern, high net long positions, warning top candlesticks, TD sequence exhaustion signals, and an RSI level of 90, which aligns with historical gold price peaks. These factors suggest a growing risk of further declines, with prices feared to drop towards $3,315.
Bank of America Warns of Prolonged Gold Price Decline
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