Gold Nears Record High Amid Warning of Potential Pullback

Gold's relentless rally faces a critical test as it approaches the $4,000 per ounce threshold. Bank of America cautions that technical indicators suggest exhaustion in the precious metal's uptrend, despite being within striking distance of all-time highs.

The bank's analysis reveals Gold has traded lower 11 out of 11 times four weeks later after similar seven-week winning streaks since 1983. Current price action shows the metal trading significantly above both its 200-day and 200-week moving averages, while its 14-day RSI has remained overbought for a month.

While $4,000 presents a psychological barrier, historical comparisons suggest gold's performance hasn't yet matched the 1970s or 2000s bull markets. This divergence leaves room for potential long-term appreciation, though Bank of America anticipates a near-term pullback before any decisive breakout above the key level.