Bank of America (BofA) provides its technical analysis on the price movement of gold based on the observed price patterns and potential scenarios.

Key Takeaways:

1. Current Gold Price Movement: Gold prices have been oscillating within a confined range between $1945 and $1987.

2. Head and Shoulders Base Formation: The price action of gold in the period from May to July is increasingly resembling a 'head and shoulders' base pattern. This pattern is typically a bullish reversal pattern that indicates a potential shift from a downtrend to an uptrend.

3. Significance of $1987 Level: If gold can rally and break above the $1987 level in the next five trading sessions, it would reinforce the belief in the 'head and shoulders' base formation, potentially indicating a move upwards to the $2070 level.

4. Potential Downside Risk: Should gold prices drop below the $1945 level, BofA sees a risk that prices might descend to retest their lows or the 200-day Simple Moving Average (SMA), which hovers around the $1900 mark.

In Summary:

BofA is closely observing gold's price movements, particularly its behavior around the pivotal $1987 mark. A move above this level could be a bullish signal, indicating a potential rise towards $2070. Conversely, a dip below $1945 could see prices approaching the $1900 region again. As always, in technical analysis, the identified patterns provide possible scenarios, and investors should use them in conjunction with other research and risk management strategies.