Gold's Surge May Continue: Bank of America Predicts $3500 Per Ounce Target

February 13, 2025 01:47 PM AEDT | By Team Kalkine Media

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Gold's Surge May Continue: Bank of America Predicts $3500 Per Ounce Target — Image source: shutterstock

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Highlights

Bank of America sees gold reaching $3500 an ounce.

Investment demand growth could drive further price increases.

The precious metal has already hit near-record highs in early 2024.

Gold has been on a record-breaking streak, and according to analysts at Bank of America (NYSE:BAC), the precious metal's climb could continue well into the future. Currently trading just above $2900 an ounce, gold is nearing its all-time high of $2942.68, which was reached earlier this week. With this in mind, Bank of America is forecasting that gold could soar to as much as $3500 an ounce in the near future.

In June 2024, Bank of America had already set a price target for gold at $3000 an ounce, and now, the bank's forecast has been revised upwards. Michael Widmer, head of metals at Bank of America (NYSE:BAC), noted in a recent report that a 10% increase in investment demand could be the driving factor behind this sharp surge. While this is a significant growth prediction, the analysts believe it’s not out of the realm of possibility.

Gold has always been seen as a safe haven in times of economic uncertainty, and with global markets in a state of flux, the demand for gold could continue to rise. If this demand materializes, the precious metal could see its value surge, making this optimistic forecast a potential reality.

Bank of America’s outlook also highlights the role of investor sentiment in influencing the price of gold. As investors look for stable, long-term assets amid market volatility, gold remains a popular choice. Should investment demand grow by 10% this year compared to last, it could provide the catalyst needed to push gold's price to new heights.

For those watching the markets closely, these predictions signal that gold's rally is far from over. With investors continuing to seek security in the precious metal, prices could reach unprecedented levels, making the $3500 per ounce target a distinct possibility.

The world’s economic environment, driven by inflationary pressures and geopolitical tensions, could lead to further instability, boosting gold's appeal. If demand follows Bank of America’s expected trajectory, gold could become even more valuable in the months to come, reinforcing its status as a cornerstone of the global financial system.

As the situation continues to evolve, attention will remain on gold, with eyes trained on whether it can reach new heights and maintain its upward momentum. Investors, analysts, and market enthusiasts alike will be watching closely.

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