ALBAWABA – Analysts at Bank of America, an American multinational investment bank and financial services holding company, expected gold prices to reach $3,000 in 2025. The team of analysts observed the continuous boost in gold prices since 2023 and anticipates that 31.1 grams of the yellow metal will approximately reach $3,000 by 2025.
Gold and US interest rates
Gold prices experienced a significant increase of 21% since the very start of 2024. Analysts at Bank of America said: "we believe gold can hit $3,000/oz over the next 12-18 months, although flows do not justify that price level right now.”
Analysts believe that reaching $3,000 per ounce requires higher non-commercial demand levels and lower US interest rates. They believe the recent rise in exchange-traded funds (ETFs) and increased gold trading volumes at the London Metals Exchange are early indicators of this potential.
Gold was priced at $2,482.96 per ounce on Wednesday, which is $10 lower than the previous day. (Shutterstock)
According to Bank of American analysts, gold may initially decline, but is expected to rebound higher, as observed recently. It is worth noting that gold prices remained steady on Tuesday, as the market's focus shifted to upcoming U.S. jobs data and the Federal Reserve's expected interest rate cuts this month in the country.
Recent polls indicate that about 31% of analysts and observers expect the US Federal Reserve to announce a 50-basis point reduction in interest rates on September 17 and 18, while 69 anticipate a 25-basis point cut.
Recent gold prices
On the other hand, gold was priced at $2,482.96 per ounce on Wednesday, which is $10 lower than the previous day. However, the price of an ounce increased by approximately $110 over the past 30 days and shows a gain of $566 compared to its price in 2023.
