Bank of America (NYSE:BAC) said on Monday it expects gold prices to average US$4,000 an ounce in the fourth quarter and US$4,813 an ounce in 2027, adding near-term headwinds will persist until risks from rising oil prices linked to the Iran war ease.
The bank said gold has been under pressure in recent weeks despite increased holdings in exchange-traded funds, and that prices could come under further pressure if investors start selling.
It said its tracker showed aggregate gold purchases by central banks, China, and India were lower year-on-year.
BofA said physical gold markets remain soft, citing feedback from last week’s London Bullion Market Association gold conference.
The bank said gold is likely to bottom out only after concerns over inflation and the Iran war ease, the US dollar stops appreciating, and the Federal Reserve ends its tightening cycle.
Spot gold was at US$4,172.39 per ounce by 10:11 a.m. EDT on Monday, down 0.5% on the day.
(Reporting by Vedika Thorat in Bengaluru; Editing by Jan Harvey)
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