Gold is often seen as a safe-haven asset during times of global turmoil, but wars and geopolitical conflicts typically aren’t long-term growth drivers for gold prices, according to analysts at Bank of America.
In fact, gold has actually dipped 2% in the week since Israel began its airstrikes on Iran. Meanwhile, tensions are ramping as reports Saturday said B-2 stealth bombers are headed over the Pacific. That’s as President Donald Trump weighs involvement in the conflict, potentially with bombers dropping massive “bunker busters” on heavily fortified Iranian nuclear sites.
In a note on Friday, BofA analysts said they expect gold prices to reach $4,000 per ounce in the next year, representing an 18% jump from current levels.
“While the war between Israel and Iran can always escalate, conflicts are not usually a sustained bullish price driver,” they wrote. “As such, the trajectory of the US budget negotiations…
