Paul Ciana of Bank of America warns investors that gold prices may continue to face a correction before finding a firmer bottom.
Paul Ciana, a technical analyst at Bank of America, expects gold prices to remain under pressure through August and September as the metal navigates a current correction. While spot gold recently struggled to hold the $4,000 support level, Ciana noted that the current selloff is disproportionately short compared to the preceding 121-week uptrend. He suggested that prices could eventually test support around $3,600 before stabilizing. Despite the downward pressure, the bank views lower prices as a strategic buying opportunity for investors to build positions. This outlook comes as the bank recently downgraded its 2026 average gold price forecast by 14% to $4,360 an ounce, though it maintains a long-term path toward $6,000 by 2027. External factors, including a steady escalation of U.S. airstrikes against Iran, have also contributed to recent price fluctuations. While the conflict has pushed gold down to levels last seen in November 2025, the bank's equity analysts highlighted that gold miners remain a highly profitable sector with high earnings yields.