Gold prices are trading above the $3,000 mark in March and are attracting heavy bullish sentiments in the charts. On Thursday, they hovered around $3,035, up nearly 15 points in the day’s trade. The XAU/USD index has remained in the green for six consecutive days and is among the top-performing assets in the commodity markets. Bank of America has revised its price prediction for gold, providing a new target.
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Gold Price Target Revised By Bank of America
In the latest commodity report, Bank of America wrote to stakeholders that gold prices could relatively become stable in 2025. According to the recent price prediction, the leading bank forecasts the precious metal to reach a high of $3,063 this year. The prices could cool down after hitting a new all-time high as the XAU/USD index is already up 15.5% year-to-date.
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Bank of America wrote that gold’s growth could be limited in the next nine months as traders would indulge in sell-offs and profit bookings. However, the bank is relatively bullish on gold and predicted that the prices could reach a high of $3,350 in 2026.
The forecast from Bank of America estimates that gold prices could rise nearly 10.5% in 2026 and reach $3,350. Also, the latest commodity report states that gold prices could hit another new all-time high of $3,500 in 2027. The confidence stems from central banks aggressively accumulating tons of gold in their reserves.
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In conclusion, Bank of America is confident that gold prices will sustainably scale up in the charts for the next two years. The diversification is making the XAU/USD chart bullish as investments worth billions pour in. “Looking at gold as an effective portfolio diversifier, central banks have an 11% gold allocation in their FX reserves, up from 5.5% in 2000, so investment in the yellow metal has already come a long way,” the analysts said. “Yet, central banks could diversify further,” said Bank of America analysts.