Gold Price in USD: Investment Opportunities in 2026 Under Unconventional Monetary Policies

PerpetualLonger · 2026-01-12T06:47:47+00:00

Bank of America’s latest strategic report indicates that despite gold being at a high level, there is still room for growth, with an expected average price of $4,538 by 2026, potentially surpassing $5,000. Driving factors include tight mineral supply and uneven investor demand. At the same time, the bank has raised its forecasts for various metal prices, warning that the palladium market may face overcapacity pressure.

PerpetualLonger

2026-01-12 06:47:47

Abstract generation in progress

Bank of America releases the latest strategic report, outlining an interesting growth outlook for the precious metals market. The bank’s strategists point out that the current macroeconomic environment is providing sustained support for precious metals, with gold’s status as a safe-haven asset becoming increasingly prominent.

Why Does Gold Still Have Room to Rise?

Although gold prices are currently at historic highs, Bank of America’s analysts believe it is not a “ceiling.” Due to unusual economic policy directions in the United States, while gold appears “overbought” technically, fundamentally it still represents “underinvestment.” Behind this contradictory phenomenon lies the market’s deep concern over long-term risks.

Specific Forecasts and Market Driving Factors

Bank of America expects the average price of gold in 2026 to reach $4,538 per ounce, and with several positive factors stacking up, gold prices could break the $5,000 mark before the end of the year. The core factors driving this trend include three aspects: ongoing tightness in mineral supply, global inventories at low levels, and uneven demand from various investors. These structural issues are unlikely to ease in the short term, establishing a solid price floor for precious metals.

Performance of Other Precious and Industrial Metals

In addition to gold, Bank of America has also raised price forecasts for copper, aluminum, silver, platinum, and other metals, reflecting an optimistic outlook for the entire commodities market. However, the bank also warns that the palladium market still faces overcapacity pressures, and its performance may lag behind other precious metals. This divergence indicates that investors need more refined asset allocation strategies.

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