Earlier this week, analysts from Bank of America made a startling prediction regarding the price of gold. They suggested that within the next 18 months, gold could potentially reach a staggering $3,000. This surge in value would be primarily driven by an increase in central bank demand, as well as a more accommodative stance from the Federal Reserve.
In a note directed to investors, Bank of America analysts explained that for this prediction to materialize, there would need to be a significant uptick in non-commercial demand. This, in turn, would require a cut in interest rates by the Federal Reserve. However, the analysts cautioned that the current market conditions do not support such a high price level at the moment. They estimated that a 20% increase in demand could potentially push gold prices to $2,500.
It is worth noting that earlier predictions from the bank had suggested a similar price hike, but not until the year 2023. This recent revision reflects the analysts’ belief in a more accelerated timeline for gold’s ascent.
