Bank of America raises gold price forecast due to trade uncertainty

According to a newly released report, BofA expects gold prices to average $3,063 per ounce in 2025 and rise to $3,350 in 2026. This forecast is significantly higher than its previous estimates of $2,750 for 2025 and $2,625 for 2026.

Currently, the spot price of gold is hovering around $3,024/ounce, up more than 15% year-to-date. This strong increase is mainly due to economic and geopolitical concerns related to the trade policies of US President Donald Trump.

Since taking office in January, the Trump administration has repeatedly introduced new tariffs with unexpected changes, sometimes just hours before they are due to be implemented, keeping markets in a constant state of uncertainty.

BofA also reiterated its view that if investment demand for gold increases by 10%, prices could hit $3,500 within the next two years. The report noted that central banks currently hold about 10% of their foreign exchange reserves in gold, and that this figure could rise to more than 30% in the future, a factor that will continue to support prices.

However, BofA also warned of several risks that could slow gold’s rally, including a US fiscal consolidation, easing geopolitical tensions, or a return to cooperation between governments . In particular, the Trump administration’s ability to impose more targeted tariffs from April 2 is also a factor to watch closely.

Currently, the market is focusing on the possibility that the US will issue retaliatory tariffs on April 2, which could have a strong impact on gold price trends in the coming time.

Source: https://baoquangnam.vn/bank-of-america-nang-du-bao-gia-vang-do-bat-on-thuong-mai-3151503.html