The price of gold has reached unprecedented levels, sparking speculation about a historic surge. However, Bank of America (BofA) Global Research suggests that the situation is more complex than it appears.
Gold Sector Rallies But Lags Past Cyclical Highs: BofA
According to BofA, the gold sector has seen a notable rally, but it is “less dramatic” and has yet to reach all the benchmarks of past cyclical highs, especially in terms of valuation compared to the broader equity market and its historical averages, Fortune reported.
Despite the rally, the gold sector’s proportion of the global equity market remains “well below” its former peaks. It currently represents 0.39% of global market capitalization, equal to its 2020 …