BofA raises gold price forecasts for 2025, 2026

Bank of America (BofA) has raised its gold period average forecasts for this year and next, while highlighting that uncertainty arising from US trade policies will continue to lend support to prices in the near-term.

BofA now expects gold to trade at $3,063 per ounce (oz) in 2025 and $3,350/oz in 2026, it said in a note on Wednesday. This is an increase from its previous forecasts of $2,750/oz for 2025 and $2,625/oz for 2026.

Spot gold is currently trading around $3,024/oz and has gained more than 15% so far this year. This year’s record rally has been steered by economic and geopolitical worries sparked by US President Donald Trump’s trade policies.

Trump’s whirlwind tariff offensive since his January inauguration has been marked by threats, reversals and delays, sometimes within hours of imposition deadlines, as his trade team formulates policy on the fly.

The bank in a note reiterated that if investment demand increases by 10% then spot gold prices could climb to $3,500 within the next two years.

It noted that central banks currently hold about 10% of their reserves in gold, and could raise this figure to over 30%, which could be a key supporting factor.

However, BofA added that US fiscal consolidation, reduced geopolitical tensions, and a return to collaborative inter-governmental relations, including more targeted tariffs on April 2, are key risks to bullion’s rally.

Currently, the main market focus is on potential reciprocal tariffs that the Trump administration might adopt on April 2.

(By Ashitha Shivaprasad and Brijesh Patel; Editing by Nick Zieminski)

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