Bank of America Predicts Gold Rally to $5,000 Amid Macroeconomic Drivers
Gold (XAUUSD) has surged 54% this year, and Bank of America forecasts further gains, with a potential climb to $5,000 by 2026. The firm highlights gold's paradoxical status as both "overbought" and "underinvested," fueling its historic rally. An average price target of $4,538 per troy ounce is set for 2026, with upside hinging on sustained macroeconomic support—including expansive U.S. fiscal policies and inflationary pressures.
Rising government debt and lower interest rates could propel Gold higher, but a hawkish Fed poses a significant risk. Higher rates diminish gold's appeal as a non-yielding asset, increasing the opportunity cost of holding it. Market participants are weighing these dynamics as gold's trajectory remains tethered to monetary policy and macroeconomic uncertainty.
