Gold Nears $4,000—But Bank of America Warns of a Major Correction
BofA Issues a Caution Flag—Right As Gold Hits Historic Highs
Let me be blunt, friend—when even the big banks are starting to get jittery about gold prices, you know the market is heating up. But here's the kicker: that same fear they're pushing out? It's a sign you're on the right track—because physical gold and silver still stand tall when everything else gets shaky.
Now, let’s talk about Bank of America—the same Wall Street machine that helped inflate the 2008 bubble and cheered it on as it popped. Earlier this year, their analysts put out a bold call: gold at $4,000 an ounce. Sounded crazy to some folks at the time. But here we are—gold just touched $3,960, up nearly 2% on the day, and has exploded by 50% this year alone. That’s the biggest annual gain since 1979, when inflation was burning holes in everyone’s pockets.
From Bullish to Cautious: What's BofA Really Saying?
But now BofA is walking it back a little. Their technical analyst, Paul Ciana, says gold may be "overbought" and “due for a correction.” He’s waving a yellow flag as we head into Q4. His advice? Raise stops, hedge, or take some profits.
Let me translate that for you: the big boys are covering their bases. They’re locking in gains while feeding the public just enough doubt to shake out retail investors. Classic move.
Ciana points out that gold has risen 130% from its 2022 lows, which is true. He also brings up past bull runs—like the 85% surge from 2015 to 2020 that was followed by a 15% drop. Fair enough. He’s right to say bull runs often pause for breath.
History Says Corrections Are Just Pit Stops on the Way Up
But here’s what he’s not saying: Every one of those so-called “corrections” ended with gold climbing even higher. Why? Because no matter what the chart jockeys say, the fundamentals for gold have never looked stronger.
Let’s remember:
- We’ve got unsustainable national debt.
- We’re watching the U.S. dollar lose credibility on the global stage.
- Central banks are snapping up gold like never before.
- And don’t get me started on the coming Central Bank Digital Currency (CBDC) nightmare. FedNow isn’t here to make your life easier—it’s about control.
The Numbers Behind the Noise
Now back to BofA. They point to historical patterns: gold was 21% above its 200-day moving average (a level where peaks tend to form), and it’s currently 70% above the 200-week average—conditions we've only seen a few times in the last two decades.
And yes, in those cases, gold did dip. But then? It soared.
Ciana even admits: if gold repeats past bull cycles, it could break $5,000—or even $7,000 an ounce if it mirrors the 2000s run.
Don’t Let the Big Boys Shake You Out
So what’s really happening here?
The financial elite is trying to walk a fine line. They know gold is going higher. They just don’t want you on board before it explodes.
They want to spook you into selling off physical assets so they can scoop them up at a discount. They’ll happily take your gold off your hands—while they prep for the fallout of their own monetary madness.
Here’s the Bottom Line, Plain and Simple:
If you own physical gold and silver—don’t panic. These short-term dips are just noise. If anything, they’re an opportunity. The long-term trajectory is still pointing straight up, and when the dollar takes its next dive or the banks start locking up your funds “for your safety,” you’ll be thankful you held onto real money.
And if you don’t own any gold or silver yet—don’t wait until gold is sitting at $5,000 or $7,000. That train is leaving the station, and the correction (if it even happens) might be your last best chance to get on board.
Take Action Before the Next Shock Hits
Before you go, take action now:
Download Bill Brocius' free guide, “Seven Steps to Protect Yourself from Bank Failure,” and learn how to sidestep the coming financial traps Wall Street and Washington are setting up.
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Stay sharp,
Frank Balm
Lead Analyst, Dedollarize News
