Bank of America (NYSE: $BAC) remains bullish on %Gold, forecasting that the price of the precious metal will reach $3,000 U.S. per ounce in 2025.
The latest forecast from Bank of America, the second largest U.S. lender, comes with gold’s price having risen 21% so far this year and currently trading at $2,526 U.S. per ounce.
In a note to clients, the commodities team at Bank of America stated: “We believe gold can hit $3,000/oz over the next 12-18 months…”
The analysts cited interest rate cuts in the U.S. and strong global demand for gold as a store of value as reasons to remain bullish on the metal.
Much of the rise in gold’s price this year has been driven by continued purchases among central banks around the world, particularly in China.
Gold is seen as a safe haven asset and often bought during times of geopolitical volatility and uncertainty. The precious metal is also treated as a hedge against inflation by traders.
The spot price of gold has been rising in recent weeks as expectations grow that the U.S. Federal Reserve will lower interest rates at its next policy meeting on Sept. 18.
Lower interest rates are seen as a positive for gold as they reduce the opportunity cost of owning bullion.
