Bank of America (BofA) Analytical Division has raised its forecast for the price of gold by the end of the next year. With this new prediction, the investment bank expects the gold price to reach $5,000 per ounce by 2026, signalling an optimistic shift for gold investors.nnThis announcement came shortly before the release of a new report by BofA’s commodity experts, predicting a longer-than-expected period of high inflation, leading to an increase in the value of gold.
BofA points out that in this time of global economic uncertainty prompt by the ongoing COVID-19 pandemic and geopolitical tensions, investors tend to flock to gold as a ‘safe haven asset’. In addition, experts argue that the era of near-zero interest rates is conducive to bullish trends in gold pricing.
The forecast provides significant implications for the gold mining industry, stimulating further exploration and extraction efforts in hopes to capitalise on the predicted rise. However, investors should be cautious in their approach, taking into account the continual fluctuations of the market. Read More
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