Bank of America: The gold downtrend is far from over, and there is fear of a drop toward $3,315

Deep Tide TechFlow message. On July 17, according to Caixin Global, a technology strategist at Bank of America in the US, based in the US Eastern Time zone, warned that this year’s pullback in gold could still have a relatively large scope. They said the price action could resemble the devastating bear markets that followed the sharp gold price surges in 1980 and 2011. They proposed a phased buying strategy, suggesting that the full allocation should only be completed if the gold price falls into the $3,450 to $3,250 range.

In a technical research report, Bank of America analysts noted that the current gold price has already started to converge a series of bearish signals, and the risk of sustained declines is increasing: a death cross pattern, net long positioning levels that are skewed high, a warning-type top candlestick pattern, TD sequence exhaustion signals, and the RSI indicator reaching 90 at the recent high—this level matches the gold price tops in 1980 and 2011.