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Reuters
Wed, Mar 26, 2025, 6:43 AM 1 min read
(Reuters) - Bank of America (BAC) has raised its golden play mean forecasts for this twelvemonth and next, portion highlighting that uncertainty arising from U.S. commercialized policies volition proceed to lend enactment to prices successful the near-term.
BofA present expects golden to commercialized astatine $3,063 per ounce (oz) successful 2025 and $3,350/oz successful 2026, it said successful a enactment connected Wednesday. This is an summation from its erstwhile forecasts of $2,750/oz for 2025 and $2,625/oz for 2026.
Spot golden is presently trading astir $3,024/oz and has gained much than 15% truthful acold this year. This year's grounds rally has been steered by economical and geopolitical worries sparked by U.S. President Donald Trump's commercialized policies. [GOL/]
Trump's whirlwind tariff violative since his January inauguration has been marked by threats, reversals and delays, sometimes wrong hours of imposition deadlines, arsenic his commercialized squad formulates argumentation connected the fly.
The slope successful a enactment reiterated that if concern request increases by 10% past spot golden prices could ascent to $3,500 wrong the adjacent 2 years.
It noted that cardinal banks presently clasp astir 10% of their reserves successful gold, and could rise this fig to implicit 30%, which could beryllium a cardinal supporting factor.
However, BofA added that US fiscal consolidation, reduced geopolitical tensions, and a instrumentality to collaborative inter-governmental relations, including much targeted tariffs connected April 2, are cardinal risks to bullion's rally.
Currently, the main marketplace absorption is connected imaginable reciprocal tariffs that the Trump medication mightiness follow connected April 2.
(Reporting by Ashitha Shivaprasad and Brijesh Patel successful Bengaluru; Editing by Nick Zieminski)
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