Wall Street keeps upping its bullish calls on gold — here's why

Wall Street keeps pushing up its already bullish calls connected golden arsenic the precious metallic climbs to caller highs.

Gold (GC=F) futures touched their 17th grounds of the twelvemonth connected Thursday, climbing conscionable northbound of $3,060 aft President Donald Trump's car tariff announcement stoked further fears of an escalating commercialized war. A determination little successful the US dollar (DX-Y.NYB) scale besides helped thrust prices higher.

Earlier this week, analysts astatine Bank of America raised their terms people connected golden to $3,500 per ounce implicit the coming 18 months from $3,000 previously. The caller people is based connected the presumption that investments summation 10% done much buying from China and cardinal banks and continued purchases of physically backed ETFs.

"Uncertainty astir Trump medication commercialized policies could proceed to propulsion the USD lower, further supporting golden prices near-term. In our view, a wide rebalancing of America's duplicate deficits could beryllium bullish golden too," wrote the analysts.

A "confluence of factors, mostly driven by the Trump administration's economical argumentation mix, person pushed investors to summation their allocations to the yellowish metal," the analysts wrote.

BofA's telephone follows a akin forecast from Macquarie Group, which precocious predicted the precious metallic volition interaction $3,500 successful the 3rd 4th of this year.

The precious metal's much than 14% rally year-to-date has adjacent prompted JPMorgan analysts to question whether a terms of $4,000 is simply a possibility.

The firm's researchers noted the commodity's terms determination from $2,500 to $3,000 occurred successful conscionable 210 days, importantly faster than erstwhile $500 increments, which person averaged implicit 1,700 days.

JPMorgan analysts asked successful a lawsuit enactment connected Wednesday, “With each $1,000 signifier taking astir two-thirds little clip than the erstwhile one, and considering the instrumentality of diminishing returns alongside investors’ attraction for circular numbers, could the $4,000 people beryllium conscionable astir the corner?"

The analysts said the freezing of Russian overseas assets pursuing the Ukraine warfare has “triggered a structural alteration successful the request for gold." Last year, request for the precious metallic reached an all-time precocious arsenic cardinal slope purchases accelerated.

"Heading into 2025, golden remained our apical bullish prime for a 3rd consecutive twelvemonth successful a row," the analysts wrote.

Ines Ferre is simply a elder concern newsman for Yahoo Finance. Follow her connected X astatine @ines_ferre.

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