Fall below $4000! Bank of America recommends "buying on dips" gold, but warns "correction may not be over"

Due to the impact of the heightened tensions in the Middle East pushing up oil prices and US bond yields, concerns about inflation and interest rate prospects have once again intensified, with gold futures falling below $4000 per ounce on Thursday and closing at their lowest level in over eight months. While crude oil prices have slightly fallen, they remain near a one-month high. Earlier, Iran indicated that Houthi rebels in Yemen are prepared to close the Red Sea oil shipping route if the US attacks Iran's power infrastructure, increasing the risk to energy supplies in the Middle East. On the economic data front, after both the US Consumer Price Index (CPI) and Producer Price Index (PPI) came in lower than expected this week, the US Commerce Department reported a 0.2% month-on-month increase in retail sales in June, but core retail sales excluding auto sales fell 0.2%, below expectations. Forex.com analyst Fawad Razaqzada pointed out in a research report, "Despite recent softening in some economic data, persistently high energy prices will make it difficult for the Fed to adopt a dovish stance. For the same reasons, investors currently prefer the US dollar over zero-yielding asset gold." Meanwhile, Bank of America technical analysts believe that the decline in gold prices provides a buying opportunity, but they also warn that the current pullback may not be over yet. Bank of America analyst Paul Ciana stated in a report that gold may still face pressure in August and September, adding that gold prices may eventually find a more solid bottom after testing support around $3600 per ounce. He noted that this round of gold pullback "has only lasted 24 weeks, while the previous upward trend lasted 121 weeks", and the duration of the pullback "is significantly shorter compared to the previous uptrend". Ciana suggested that the decline in gold prices will provide buying opportunities for investors, and advised investors to consider gradually adding to positions on the dips. Comex gold near-month contracts (XAUUSD.CUR) for July delivery fell 1.4% to $3985.60 per ounce, while Comex silver near-month contracts (XAGUSD.CUR) for July delivery fell 2.1% to $55.898 per ounce, marking their lowest settlement prices since November 6 and November 26 of last year, respectively.