Did you catch our Wednesday bulletin? As we reported, gold prices surged to a nearly eight-year high during trading, hitting $1788.60 at one point. This level meant that Bank of America saw its own price predictions coming true – leading to further levelling up.
The bank’s analysts now believe that $2000 (or close to it), is within reach. What’s more, we could see prices ascending above that point, should the current rally echo that we saw in 2006.
The bank said, “Last week’s accommodative Federal Reserve announcement led gold futures to $1,754. This confirmed a continuation head-and-shoulders pattern that targets $1,852, possibly $1,947. Gold prices have rallied 20% or more 15 times since 1981 and 30% or more seven times.
“The biggest rallies were in 2006-2011 during the late cycle equity rally into and after the Global Financial Crisis,” the analysts said. “If $1,947 were to be reached, then gold would be up 27% YTD [year to date]. A 31% YTD rally reaches $2,000. A 41% rally like 2006 reaches $2,150.”
Buy now to be in prime position for the expected increase.