Gold prices expected to reach $4,000 due to U.S. deficits overshadowing Israel-Iran conflict.

From Yahoo Finance: 2025-06-21 15:35:00

Analysts at Bank of America predict gold prices could reach $4,000 per ounce in the next year, despite wars not being long-term growth drivers. The Israel-Iran conflict has caused gold to dip 2%, but geopolitical instability and U.S. budget deficits will play a larger role in shaping gold’s future.

Central banks have dumped $48 billion in Treasuries since March, shifting towards gold due to geopolitical instability and potential trade conflicts. Bank of America estimates central banks’ gold holdings now equal 18% of U.S. public debt, a warning for U.S. policymakers regarding fiscal sustainability and market volatility.

Read more: Gold prices should hit $4,000 as U.S. deficits may overshadow the Israel-Iran conflict, BofA says