Bank of America Raises Its Gold Price Forecast

Spot gold is currently trading around $3,024 per ounce, marking a year-to-date gain of over 15%.

Bank of America (BofA) has revised its gold price projections upward for this year and next, citing short-term price pressures driven by uncertainty surrounding U.S. trade policies.

BofA now expects gold to trade at $3,063 per ounce in 2025 and $3,350 in 2026, up from its previous forecasts of $2,750 for 2025 and $2,625 for 2026, according to a note released Wednesday.

XAU/USD

Tariffs and Trump: A Recipe for Record Gold Prices

This year’s record-breaking rally has been fueled by economic and geopolitical concerns stemming from President Donald Trump’s trade policies. Since taking office in January, Trump’s tariff strategy has been marked by threats, reversals, and last-minute delays, as his administration crafts policies on the fly.

In its note, BofA reiterated that if investment demand rises by 10%, spot gold prices could climb to $3,500 within the next two years.

Additionally, the bank highlighted that central banks currently hold around 10% of their reserves in gold and could increase this to over 30%, which would serve as a key support factor for prices.

However, BofA cautioned that U.S. fiscal consolidation, easing geopolitical tensions, and a shift toward cooperative intergovernmental relations—including more selective tariffs expected on April 2—pose significant risks to the bullion rally.

For now, markets remain focused on the possibility of reciprocal tariffs that the Trump administration may implement on April 2.

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.