On Monday, Bank of America (BofA) sharply raised its price targets for precious metals, projecting gold to reach USD 5,000 an ounce by 2026, with an average price of USD 4,400. Moreover, the bank’s outlook for silver was revised upward, setting a 2026 average of USD 56.25 per ounce and a peak at USD 65. The bank warned of potential short-term corrections but maintained its view that both gold and silver would benefit from further price appreciation next year.
Bank of America attributed its bullish outlook primarily to ongoing fiscal deficits in the United States, swelling national debt, and the administration’s stated aims to reduce both the current account deficit and capital inflows. Additionally, anticipated interest rate cuts—even as inflation hovers around 3%—should continue to underpin gold prices, the bank said.
Spot gold recently surpassed the USD 4,000 per ounce threshold and was last trading at USD 4,109.01 as of 01:35 P.M. (GMT+7), having surged around 55% since the start of the year. Bank of America indicated that for gold to hit USD 6,000 per ounce, investor purchases would have to rise by 28%.
On silver, the bank anticipates continued price support despite predicting an 11% drop in demand next year, as supply shortages persist. The Silver Institute estimates the market is on track for its fifth consecutive year of structural deficit.
A significant transfer of silver to New York in anticipation of tariffs—which ultimately did not occur—has tightened the London market, contributing to elevated lease rates.
Bank of America suggested that although market imbalances may gradually resolve, this could heighten volatility and pressure near-term silver prices. Spot silver recently reached an all-time high of USD 51.70 per ounce, while December 2025 silver futures on COMEX were trading at USD 49.72.
