Bank of America: Gold Price Could Reach $6000 by Mid-2026

SadaNews Economy - Bank of America expects that the price of an ounce of gold will reach $6000 by mid-2026

Analyst Michael Hartnett from Bank of America wrote in a memo to clients: "History is not a guide to the future, but the average increase in gold during four upward cycles was about 300% over 43 months, which means the gold price could reach $6000 by spring."

Hartnett predicted that the price of gold would reach $6000 an ounce by spring, which would increase its price by more than 20% above its current historical highs.

His expectations reflect increasing optimism regarding gold, supported by central bank purchases, tightening supply dynamics, and investors seeking protection against currency risks, although the level of $6000 is significantly higher than most prevailing forecasts and represents a strong but possible bullish scenario.

On January 5, Michael Widmer, head of metals research at Bank of America, stated that gold will remain a key asset in investors' portfolios this year.

Widmer wrote: "Gold continues to stand out as a hedge tool and a source of additional returns." Bank of America views the tightening market conditions and the sensitivity of strong earnings as making gold a key hedge tool and a potential driver of returns in 2026.

Bank of America's forecasts for 2026 are based on expectations of declining supply and rising costs in the gold sector. Widmer anticipated that the thirteen major gold mining companies in North America would produce 19.2 million ounces this year, a decrease of 2% from 2025, adding that most market forecasts for production are overly optimistic.

He also predicted a significant increase in producers' profitability, as total earnings before interest, taxes, depreciation, and amortization are expected to rise by 41% to about $65 billion in 2026.

By that time, Bank of America expects the average gold price to reach $4538 per ounce in real terms during 2026, while prices for silver, platinum, and palladium are also expected to rise, reflecting the bank's positive outlook on precious metals in general.

Widmer noted that silver may attract investors willing to take on higher risks for additional gains, indicating that the current gold-to-silver ratio, which is around 59, suggests that silver can still outperform gold.

He cited the historic low of the ratio, which was 32 in 2011, as an indicator that the price of silver could reach $135, while its low in 1980, which was 14, suggests that the price of silver could reach $309 per ounce.