Bank of America Warns Gold May Struggle Above $4,000 as Hawkish Fed Pressures Outlook

Bank of America projects gold will struggle to hold above $4,000 per ounce over the next three months, potentially falling to a low of $3,750 in the fourth quarter. The bearish near-term outlook stems from Middle East tensions and higher oil prices that reignite inflation fears, supporting the US dollar and a hawkish Federal Reserve. Headwinds are compounded by softening physical demand in China, India, and central banks, despite two consecutive months of ETF inflows. However, BofA forecasts a long-term rebound to around $4,800 to $4,813 per ounce in 2027.