Major banks are betting big on gold, predicting significant price increases fueled by global uncertainty.
Goldman Sachs and Bank of America’s Forecasts
Bank of America forecasts gold reaching $4,000 per ounce within the next year—a jump of over 17% from current levels. Goldman Sachs is slightly more conservative, predicting a $3,700 price tag by year’s end, rising to $4,000 by June 2026. This bullish outlook is driven by increased demand from central banks.
Geopolitical Tensions Drive Demand
Currently trading around $3,395 (up roughly 30% year-to-date), gold’s recent price surge is partly attributed to escalating geopolitical tensions. Recent Israeli airstrikes on Iranian targets have sparked concerns about a wider Middle East conflict, causing market jitters and driving up gold prices, according to Daniel Pavilonis, a senior market strategist at RJO Futures. He notes that the market is anticipating Iranian retaliation, keeping prices elevated. While gold initially spiked after the attacks, it has since slightly retreated.
Important Note: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before making any investment decisions.
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