BofA lifts 2026 gold forecast to $5,000/oz

Bank of America (BofA) on Monday raised its price forecasts for precious metals, lifting its 2026 outlook for gold to $5,000 an ounce, with an average of $4,400, and for silver to $65 an ounce, averaging $56.25.

The bank sees a risk for a near-term correction but still expects further upside for both metals next year, it said in a note.

"The White House's unorthodox policy framework should remain supportive for gold given fiscal deficits, rising debt, intentions to reduce the current account deficit/capital inflows, along with a push to cut rates with inflation around 3%," the bank added.

BofA said that for gold to rally to $6,000/oz, investors will need to increase their purchases by 28%.

The bank also expects silver to stay supported, despite forecasting an 11% drop in demand next year, because of a persistent shortfall in supply. Silver is heading for the fifth year of structural market deficit, according to the Silver Institute industry association.