Bank of America: Gold prices may rise to $5,000 but could consolidate in the short term
Bank of America expects gold prices to rise to $5,000 per ounce in the next 12 to 18 months. Bank of America released a research report stating that due to the structural deficit in the United States, inflationary pressures brought about by de-globalization, concerns about the independence of the Federal Reserve, and ongoing global geopolitical tensions, it has raised its average gold price forecast for 2026 by 18% to $4,329 per ounce, and the silver price forecast by 29% to $54.88 per ounce. The report pointed out that investment demand is expected to grow next year similarly to this year, potentially pushing gold prices up to $5,000 per ounce. However, the bank also noted that gold ETF purchases in September this year increased by 880% year-on-year to a historic high of $14 billion, with total investments in physical and paper gold nearly doubling, exceeding 5% of the global stock and fixed income markets. Therefore, it warns investors that the market may consolidate in the short term and that they should pay attention to downside risks, including the Supreme Court's ruling on Trump's tariffs; if economic data improves, the Federal Reserve may shift to a hawkish stance; and the results of the U.S. midterm elections may affect the Trump administration's ability to implement economic policies
According to the Zhitong Finance APP, Bank of America expects gold prices to rise to $5,000 per ounce in the next 12 to 18 months. Bank of America released a research report stating that due to the structural deficit in the United States, inflationary pressures brought about by de-globalization, concerns about the independence of the Federal Reserve, and ongoing global geopolitical tensions, it has raised its average gold price forecast for 2026 by 18% to $4,329 per ounce, and the silver price forecast by 29% to $54.88 per ounce.
The report pointed out that investment demand is estimated to grow similarly to this year, which could push gold prices up to $5,000 per ounce.
However, the bank also noted that gold ETF purchases in September this year increased by 880% year-on-year to a historic high of $14 billion, with the total investment in physical and paper gold nearly doubling, exceeding 5% of the global stock and fixed income markets. Therefore, it reminds investors that the market may consolidate in the short term and that they should pay attention to downside risks, including the Supreme Court's ruling on Trump's tariffs; if economic data improves, the Federal Reserve may turn hawkish; and the results of the U.S. midterm elections may affect the Trump administration's ability to implement economic policies
