Bank of America forecasts gold price below $4,000 over the next three months

Bank of America expects gold to average below $4,000 per ounce in the fourth quarter, despite trading around $4,100 after hotter US inflation data. Key factors influencing this forecast include a 16.6% year-over-year fall in purchases by key buyers, a 25% decline in US gold demand, and a record 4,256 metric tons held in gold ETFs, which BofA warns could add selling pressure. While central banks added a net 39 tons in August, BofA suggests gold may only bottom once the Fed exits its tightening cycle, with a potential low flagged at $3,750.