Bank of America recommends purchasing gold on the dip after futures settled at an eight-month low amid inflation concerns.
Gold futures settled below $4,000 per ounce Thursday, marking the lowest level in over eight months. The decline followed a rise in U.S. Treasury yields and oil prices, fueled by escalating Middle East tensions, which reignited inflation fears and pressure on interest rates.
Prior to the drop, gold had held near $4,000 for weeks, supported by geopolitical uncertainty and expectations of Federal Reserve rate cuts. However, stronger-than-expected economic data and persistent inflation concerns reversed sentiment, pushing yields higher and reducing gold’s appeal as a non-yielding asset.
Bank of America analysts suggested the pullback presents a buying opportunity, citing long-term support from central bank demand and macroeconomic uncertainty.