Bank of America Warns Gold Faces Q4 Downside Risk Toward $3,750 as Oil Rises

Bank of America warned that gold faces significant near-term downside risk, projecting it to average $4,000 per ounce in the fourth quarter of 2026 with potential dips toward $3,750. Despite maintaining long-term targets of $5,000 in mid-2027, the bank identified rising energy prices and Middle East tensions as major threats. A surge in crude to $150 per barrel could cut gold's 2027 average to $3,500. Since crude crossed $90 on August 20, gold has dropped roughly 8%, though Comex futures recently ticked up 0.4% to $4,172.90.