BofA's Gold Forecast: Record Prices Ahead

Renewed Record Expectations for Gold from BofA

Bank of America (BofA) stated that it anticipates gold prices will rise to record levels throughout 2025. The bank expressed that these macroeconomic conditions will continue to maintain their strength into 2026, further driving prices to new peaks.

High Targets for 2026

In BofA's "Next Year" report, despite the fact that gold is technically in the "overbought" zone, it was noted that there is a persistent perception of "insufficient investment" in the market. It was emphasized that these dynamics have a supportive effect on the market despite high valuations.

BofA strategists, led by Michael Widmer, mentioned that the unconventional economic policies of the U.S. are among the most important factors behind the rise of gold. If these conditions continue, it is predicted that gold could reach $5,000 per ounce in 2026. The bank set its average price forecast for gold in 2026 at $4,538/oz.

Expectations for Other Precious Metals

For silver, it is estimated that demand will decrease by 11% in 2024. However, it is noted that the supply shortage in silver may keep prices around $60/oz. Additionally, price forecasts for platinum and palladium were set at $1,825/oz and $1,525/oz, respectively.

BofA's predictions for gold and other precious metals continue to be an important market indicator for investors.