In a recent note, Bank of America warned that gold is the final safe haven in the United States amid risks related to rising national debt. Indeed, they argued that the metal has become more attractive than US Treasury bonds due to the risks of an impending debt crisis.
The bank noted that the US national debt is predicted to continue reaching record levels over the next three years. Therefore, economic pressure on the country has shifted how gold reacts to macroeconomic developments such as lowered interest rates. Ultimately, the dynamic makes gold “an attractive asset,” the bank says, as it predicted it to eventually reach $3,000.
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