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Analysts at Bank of America see gold prices reaching $4,000 an ounce — an 18% jump above current levels — within the next year due to a ballooning US fiscal debt.
Gold — traditionally viewed as a safe haven during times of uncertainty — has risen by nearly 30% this year, driven by high global trade tensions and rising geopolitical risks.
In April, the yellow metal soared to an all-time high of $3,500 as an unprecedented tariff war ignited by the US rocked the global markets. A dragged-out US-Ukraine deal also did little to assuage investor concerns.
Contrary to popular opinion, another potential rally to $4,000 may have less to do with these factors, but more to do with US debt, BofA analysts say.
In a note published Friday, the analysts explained that wars and geopolitical conflicts typically “aren’t long-term growth drivers” for gold prices, pointing to the 2% dip in…
