Gold just cracked $4,000 for the first time. Why BofA says the record-breaking rally is at risk.

Core Viewpoint - The price of gold is experiencing its best performance in decades, driven by economic uncertainty, geopolitical factors, and the risks of inflation and currency devaluation [1][2]. Group 1: Price Performance - Gold prices surged to an all-time high of over $4,000 per ounce for the first time, indicating strong demand for the precious metal [3][7]. - Since the beginning of 2024, gold prices have approximately doubled from around $2,000 to $4,000 [5]. Group 2: Market Analysis - Bank of America analysts noted that gold has been on a steady rise for seven consecutive weeks, a pattern that historically precedes a potential price correction [4]. - The current price of gold is 20% above the 200-day simple moving average, suggesting it may be nearing the peak of the latest rally [5]. - Previous rallies have shown that gold typically peaks when trading 25% above the simple moving average, indicating a possible tipping point for the current cycle [6]. Group 3: Investor Behavior - Investors are increasingly turning to gold as a safe haven amid ongoing political and economic instability [7].