Forecasts For Gold

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Forecasts For Gold

Wall Street Sets New Forecasts For Gold (Xau/Usd)

Gold has proven itself as the dark horse as it has just refreshed new all-time highs recently. The rally in the Gold is fueled by the political uncertainty, trade tariffs, and the weakness in the stock market.

The gold futures contract is already trading above $3100, which is a record in itself. The recent wave of bullishness in Gold came after Trump announced new tariffs on automobiles and their parts. This pushed the US Dollar lower but was helpful for Gold.

Gold To Target $4000

Recently, Bank of America has also set a new bullish target for the Gold (XAU/USD). According to Gold, it will now jump to $3500 during the next 18 months. That would be an increase of almost $500 or around 16%.

This forecast also considers the fact that China and other central banks will increase their Gold bullion purchase. Also, investment in the Gold ETFs will push the prices higher.

For now, there is a great deal of uncertainty over the trade policies of the USA. This is pushing the US Dollar lower but sending the Gold to new highs. A number of factors have pushed the investors to up their exposure to the Gold (yellow metal).

BofA's statement comes after Macquarie Group made a similar prediction, predicting that the precious metal would reach $3,500 in Q3 of this year.

Because of the precious metal's 17%+ year-to-date increase, analysts at JPMorgan are even wondering if a price of $4,000 is possible.

They also added that the Gold moved from $2500 to around $3000 in around 210 days. That's not even one year (365 days) and shows the intensity of the bullish trend.

According to JPMorgan, the $4000 level is now on the cards for the Gold traders. Considering the economic situation and the speed of the Gold advance, the $4K is no longer a dream but a reality.

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