Bank of America analysts say gold’s near-term correction may extend after a 7.5% year-to-date decline amid weakening technicals.
August gold futures fell to $3,975.40 per ounce, down 7.5% since January and 10.6% over the past month. The decline follows a 63% surge in 2025, gold’s strongest annual gain in over four decades.
While long-term fundamentals remain intact, near-term technicals have deteriorated. Key moving averages have weakened, positioning is crowded, and recent rebounds lack strong buyer conviction. The metal still holds above levels preserving its broader uptrend.
BofA analysts suggest the post-January correction could persist, potentially delaying a durable bottom. The conflict between structural support and fragile charts mirrors past speculative peaks, raising concerns for 2026 performance.