Bank of America has once again revised its price forecast for gold upwards, with it saying yesterday (Tuesday) that is expects to see the precious metal trading at $3000 within the next 18 months. This figure is double that of its previous forecast – what’s more, the briefing note suggests that an average of $2063 will be hit next year thanks to economic pressures and Federal Reserve policies.

Its analysts explain, “As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure and investors will aim for gold. Beyond traditional gold supply and demand fundamentals, financial repression is back on an extraordinary scale. Rates in the US and most G-10 economies will likely be at or below zero for a very long period of time as central banks attempt to push inflation back above their targets. As central banks rush to expand their balance sheets and backstop the economy, a lot of risks could effectively be socialized, boosting the appeal of gold.”

According to the bank’s experts, we could see the bull run towards those figures starting as early as the next few weeks should lockdown restrictions remain in place. “The positive equity/gold correlations are a possible sign that equity markets may not have fully bottomed and that the gold market has further room to run, in our view. The trigger here could be an extension of lockdown restrictions over the next few weeks.”

This website is published by The Gold Safe Ltd, a Company registered in England and Wales with Company number: 11994725 a subsidiary of the United Kingdom Asset Company Ltd, a Company registered in England and Wales with Company number: 09784057 and is intended for information and promotional purposes only. The information provided in our free guide is not intended as an offer to invest and should not be construed as financial advice.

Fees: There are no fees for using this website or service.

Contact us: Tel: 0203 695 3400

Address: 71-75 Shelton Street, Covent Garden, London WC2H 9JQ

All rights reserved copyright 2020 The Gold Safe Ltd

Follow us on:

    Wait! Before You Leave Download The 'Ultimate Guide to Gold Investing'
    FREE of Charge