Bank of America Cuts 2026 Gold Price Forecast by 14% to $4,360, But Sees Value in Mining Stocks

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According to Bank of America, the bank's commodity analysts last week downgraded their 2026 average gold price forecast by 14% to $4,360 an ounce, citing expectations that the Federal Reserve will raise interest rates three times this year.

Despite the forecast reduction, BofA's equity analysts see compelling value in gold mining stocks. Gold miners have free cash flow 10 times higher than 2020 levels, with earnings yields of 12.0%—the highest among all sectors—and are trading at a 19% discount to their net asset values.

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