BofA predicts gold price to rise to $4,000/ Ounce
Bank of America (BofA) forecasted that gold prices will rise to $4,000 per ounce over the next year amid geopolitical instability.
The bank indicated that interest rate volatility and a weakening USD should continue to support gold prices as investors resort to safe-haven assets.
The investors have allocated 3.5% of their investment portfolios to gold, which is still below the historic level recorded in 2011, noting that individual investors may allocate more capital as the price of the yellow metal continues to rise, the bank added.
Despite increased central bank purchases of gold in recent years, the note indicates that they hold approximately 18% of their reserves in gold, which is below the historical levels recorded during the Bretton Woods era of the 1970s.
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