Gold remains one of the most popular asset classes in times of crisis. Many market participants see the precious metal as a safe haven, gold is considered crisis-proof and stable in value. For Bank of America’s commodities experts, this is one of the reasons why it is spending a very ambitious price target for gold.
Price target: $ 3,000 in 18 months
The commodities analyst team at the second largest US bank is confident that the gold price will jump to $ 3,000 in the next 18 months. Based on the current price level, the price of the precious metal could increase by more than 70 percent.The experts cite various factors to justify their gold price forecast. BoA analysts see the central bank’s policy as the main cause of a gold rally, which is drastically expanding its balance sheets as a result of the corona pandemic in order to contain the significant consequences for the economy. “The Fed cannot print gold,” said a report. The experts emphasize that gold is not available in unlimited quantities. The high fiscal spending of the currency keepers could strongly devalue fiat currencies and thus accelerate the flight of investors in gold.