BofA Warns Gold Could Slide Below $4,000 in Q4, Sees $3,750/oz
RING sits 30% above its 52-week low of $58.21.
Summary
Bank of America's latest precious metals outlook warns gold prices could fall to $3,750/oz in Q4, with a risk of sliding below $4,000, citing fragile sentiment and potential rapid unwinding of positioning if Middle East tensions persist. The bank maintains its bullish 2027 forecast but flags a downside scenario where oil at $150/bbl would push gold to average $3,500/oz in 2027. BofA also highlights the risk that higher energy prices could force central banks to sell gold reserves, similar to the start of the Iran war. This follows gold's 1.3% drop to $4,281.30/oz on September 23, the lowest since August 6, as Treasury yields surged. The warning is directly relevant to RING, which tracks gold miners and is highly sensitive to gold price forecasts.
At the time of this announcement, RING was trading at $75.93 on NASDAQ in the Finance sector. The 52-week trading range was $58.21 to $100.41. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.