BofA Warns of Further Gold Price Decline - Potential Drop to $3,315 by 2026

Bank of America (BofA) technical strategists have warned that gold prices could decline to $3,315 by 2026, citing parallels to the bear markets following the 1980 and 2011 gold price peaks. The strategists note that 'secular peaks' are often followed by sharp declines that erase at least 50% of the previous uptrend.

Key Risks in the Gold Correction

■The annual decline of 7.5% has accelerated to 16.8% in the past three months.

■The 24-week correction is disproportionately short compared to the previous 121-week uptrend.

■Signals such as the death cross formation, high net long positioning, and RSI readings reaching 90 indicate a higher risk of further decline.

BofA's Projections and Strategies

■The $3,702 level (50% Fibonacci retracement) is marked as a critical resistance level.

■A 174-week methodology identifies $3,605 as another potential decline target.

■Near-term recovery to $4,325-$4,500 is possible before the next significant decline phase.

The current gold correction, when compared to historical patterns, suggests a much deeper downturn. While we recommend cautious accumulation below $4,000, we advise full allocation in the $3,450-$3,250 range.