Bank of America (BofA) has a bullish view on gold and anticipates the prices of the rare-earth element to hit the $3,000 mark per ounce within the next 18 months, according to the bank’s most current report titled “The Fed can’t print gold.”

Per the report, gold is the “supreme shop of worth,” and the costs have performed well over the last 15 months versus other asset classes, although the bullion tape-recorded a hard sell-off in March. The property traded around $1,678 today, representing 11% growth this year.

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Gold 1-year chart. Source: TradingView

Financiers Will Go For Gold

BofA had earlier positioned its 18- month gold-price target at $2,000; the benchmark cost is likewise VanEck’s latest forecast. However, the bank increased its target to $3,000 as federal governments around the globe continue to print more money to promote the economy due to the COVID-19 pandemic.

” As reserve banks & federal governments double their balance sheets & fiscal deficits, we up our 18 m gold target from $2000 to $3000/ oz. The Fed can’t print gold, unlike every other property,” as reported by the bank.

As policymakers continue to release more financial and monetary stimulus strategies, Bank of America thinks it could put fiat currencies under pressure, therefore forcing financiers to think about purchasing gold.

Gold Faces Barriers

For the rest of the year, BofA thinks the average price per oz would be $1,695, and in 2021, the costs would rise by 22% to $2,063, despite the fact that the possession has never traded up to that level. The prices struck an all-time high of $1,92117 in September 2011.

In spite of the bullish views, BofA was sure to add in its report that aspects like a strong dollar, lowered monetary market volatility, and lower fashion jewelry need in countries like India and China could continue to prevent gold from breaking brand-new records.

On the other hand, well-known gold bug, Peter Schiff, recently shared what he thinks is the factor why gold has actually not risen beyond its current cost. Once they are able to figure it out, the prices of gold will hit brand-new records, he stated.

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