BofA raises gold price forecasts for 2025 and 2026 due to trade policy uncertainty.
From Yahoo Finance: 2025-03-26 09:43:00
Bank of America has raised its gold price forecasts for this year and next, citing uncertainty from U.S. trade policies. They now expect gold to reach $3,063/oz in 2025 and $3,350/oz in 2026, up from previous forecasts.
Spot gold is currently trading at $3,024/oz, up over 15% this year due to economic and geopolitical concerns sparked by Trump’s trade policies. Bank of America notes that if investment demand rises by 10%, gold prices could reach $3,500 in the next two years.
Central banks currently hold about 10% of their reserves in gold, with potential to increase to over 30%, providing support for gold prices. Despite this, risks to the rally include US fiscal consolidation, reduced tensions, and a return to more collaborative inter-governmental relations.
Market focus is on potential reciprocal tariffs that the Trump administration may impose on April 2. Bank of America highlights these tariffs as a key risk to gold’s current rally.