Bank of America: Gold set to hit $3,000 within 18 months

Price target raised by 50%

The gold price could surge to an all-time high of $3,000 by the end of 2021 on the back of record central bank balance sheets and government fiscal deficits, according to Bank of America (BofA).

Gold has been one of the best-performing asset classes both year-to-date and since 2019. The precious metal has risen by a third since the start of last year, while its 11.8% gain during a risk-off 2020 has only been beaten by the 30-year US Treasury. The rise has not been a straightforward one, and BofA still sees headwinds on the horizon, including a strong US dollar, reduced financial market volatility and lower jewellery demand from India and China. Gold outlook for Q1 2021: Into unchartered territory However, the firm's commodities strategists believe other factors will drive ...