News) - Bank of America’s target for gold the year was hit earlier this week as prices pushed above $1,750 an ounce, hitting a 7.5-year high. The bank’s analysts are now letting their bullish bet ride to all-time highs.
The analysts warned that although momentum indicators are starting to flash overbought signals, they remain optimistic that prices will continue to rally. In a report Wednesday, the bank said that it is expecting prices to eventually hit new all-time highs if they can break above resistance of $1,800 an ounce.
“Last week's accommodative Federal Reserve announcement led gold futures to $1,754. This confirmed a continuation head-and-shoulders pattern that targets $1,852, possibly $1,947,” the analysts said.


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