Commodity analysts at the Bank of America (BoA) have revised up their expectations for gold following its recent run of record-breaking pricing. They’re calling for the yellow metal to top £1,898 ($2,400) this year – and crucially, they say the Federal Reserve’s interest rate activities won’t be as crucial as it had previously thought in helping the bulls surge to yet another all-time price high. Instead, analysts say they expect gold to reach those levels, irrespective of Federal Reserve activity.
Analysts Michael Widmer explained, “We had previously proposed a $2,400/oz price estimate if the Fed cut rates in 1Q24; we commit to that estimate for this year, even if rate cuts come later.”
In expecting gold to push higher, the BoA analysts cite several supportive factors, including the increasing appetite for gold amongst central banks. This trend looks to be going nowhere anytime soon and is helping to keep prices elevated.
BoA analysts also say that there is a strong demand for physical gold globally. It expects demand from investors to surge when the Federal Reserve does initiate its hotly anticipated rate cutting cycle, helping to lift gold prices past £1,898 ($2,400) before the end of the year.
Given the speed gold has been smashing price records in recent weeks, we could see that milestone looming large sooner rather than later. You can’t afford to delay.
Buy gold now.
