Bank of America has issued its most bullish gold forecast to date, projecting the precious metal could rally to $4,000 per ounce within 12 months as escalating Middle East tensions drive demand for safe-haven investments.
The precious metal climbed 1.3% to $3,428.10 per ounce on Friday, June 13, nearing its all-time peak of $3,500.05 reached in April. Trading during the week of June 9-13 saw gold advance roughly 4% as Middle East conflict fears intensified following Israeli military action against Iran.
Bank of America’s new $4,000 projection marks a sharp upward revision from targets the firm set in March: $3,063 for 2025 and $3,350 for 2026. Investment bank Goldman Sachs has issued similar forecasts, predicting $3,700 by year-end 2025 and $4,000 by mid-2026.
“Israel knocking out Iranian targets is causing a little bit of geopolitical scare in the market,” said Daniel Pavilonis, senior market strategist at RJO Futures.
The optimistic price targets stem from expectations of sustained central bank gold purchases and anticipated Federal Reserve interest rate reductions. Encouraging inflation data released that week reinforced market expectations for monetary policy easing.
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