Bank of America Says Gold Prices Could Top $3,500 If This Happens

Bank of America (BofA) remains bullish connected golden and says prices topping $3,500 could beryllium a reality. Leading planetary banks and organization funds predicted that the yellowish metallic could breach the $3,000 people successful 2025. In 2024 alone, the precious metallic surged a grounds 28% and continues the tally successful 2025. Its prices person topped much than 10% year-to-date making it the astir sought-after plus successful the commodity markets.

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Bank of America: Gold Prices Headed Towards $3,500

Source: FXstreet

Going by its stellar show successful the charts, Bank of America is definite that golden prices could ascent supra $3,500. Commodity Strategist Michael Widmer astatine BofA wrote successful the latest probe paper that the request for golden from cardinal banks is skyrocketing. He wrote the unit driving the yellowish metallic successful the charts is chiefly the cardinal banks of processing countries.

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Widmer explained that if retail investors, organization funds, and cardinal banks combinedly summation their purchases by 10%, golden prices could rapidly summation and apical a caller precocious of $3,500. “That’s a lot, but not impossible,” helium wrote successful the latest insubstantial shared with the bank’s clients.

“So far, golden (prices) has rallied mostly connected the backmost of exceptional purchases by the authoritative sector,” read the report. “Worried astir the US fiscal deficit, commercialized disputes, wars, sanctions, and plus freezes, cardinal banks and different investors person pushed spot golden prices to a record.”

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Central banks of processing countries are diversifying their reserves and accumulating tons of golden since 2022. China, Russia, India, Brazil, and South Africa person been regularly adding precious metallic to the reserves. The determination aided golden prices to surge which inadvertently made retail investors articulation the bandwagon and reap the rewards. 2025 could beryllium the twelvemonth of golden arsenic Trump’s tariffs could disrupt the marketplace and marque organization funds question a harmless haven successful the precious metal.