Bank of America warns: High risk of gold correction, potential repeat of 1980/2011-style crash

(1) Bank of America technical strategists warn that gold's pullback this year may still have considerable downside, and its trend could resemble the devastating bear markets that followed gold price surges in 1980 and 2011. (2) They recommend adopting a phased buying strategy, completing the entire allocation only when gold prices fall to the $3,450 to $3,250 range. (3) The current gold price has accumulated multiple bearish signals: a death cross, excessively high net long positions, a warning top candlestick, a TD Sequential exhaustion signal, and the recent RSI indicator hitting 90 at the highs—which is consistent with gold price tops in 1980 and 2011—suggesting increasing downside risk.