University of Kwazulu-Natal

Bank Of America Predicts Gold To Hit 5 000 And Silver 65 By 2026

Bonisiwe Shabane
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bank of america predicts gold to hit 5 000 and silver 65 by 2026

Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada. He has worked exclusively within the financial sector since 2007, when he started with the Canadian Economic Press. Neils can be contacted at: 1 866 925 4826 ext. 1526 nchristensen at kitco.com @Neils_c Bank of America just stunned Wall Street with a new bold call on precious metals, raising its 2026 forecasts for gold to $5,000 per ounce and silver to $65, citing a potent mix of...

On Monday, the bank’s commodity research team, led by Michael Widmer, stated that both precious metals have room to run higher despite near-term risks, particularly as investors scramble for safe havens amid ongoing U.S. fiscal imbalances and a shifting macroeconomic backdrop under the Trump administration. Bank of America stated that a 14% increase in gold investment demand in 2026 could push prices to $5,000 or higher. And the numbers back it up: ETF inflows into funds like SPDR Gold Shares (NYSE:GLD) and iShares Gold Trust (NYSE:IAU) soared 880% year-over-year in September, totaling $14 billion, a level never seen before. To put that into context, gold investment demand now represents over 5% of global equity and bond markets, up from just 2.8% two years ago. That shift is seismic, and it suggests that institutions are positioning for a world where monetary policy might remain looser for longer.

Bank of America’s Global Research team has delivered a striking upgrade: raising its 2026 gold forecast to $5,000 per ounce, with an average expectation of $4,400. Simultaneously, it sees silver climbing to $65/oz by 2026. These forecasts arrive as gold recently surpassed the $4,000/oz milestone for the first time, and investors scramble for hedges amid macro and geopolitical turbulence. BofA expects investment demand to grow ~14%, replicating the strength seen in 2025. That demand could help push gold toward $5,000/oz. ETF inflows, central bank buying, and macro hedging are highlighted as key supporting drivers.

On silver, while BofA anticipates an 11% drop in demand in 2026, it argues that the structural deficit and disruptions in physical markets will keep silver supply tight. That tension, it says, supports a $65 target. Bank of America’s Global Research division has released one of the boldest forecasts in today’s precious-metals market: gold reaching $5,000 per ounce and silver climbing to $65 per ounce by 2026. This call, coming from one of the world’s largest financial institutions, signals a major shift in how Wall Street views hard assets, inflation, and global financial stability. In this detailed breakdown, we explore why Bank of America is so bullish, how this compares to other major outlooks, and what it means for investors—especially those who prefer physical gold and silver over... Bank of America’s upgraded 2026 outlook points to several strengthening forces that could drive gold dramatically higher over the next 12–24 months.

These factors align with long-term themes that have historically preceded major gold bull markets. Governments worldwide are running large and sustained deficits, with debt-to-GDP levels reaching record highs. According to BofA analysts, this creates: Gold historically performs best when confidence in fiat currency declines—a trend that is accelerating today. Bank of America expects precious metals to extend their rally into 2026. Analysts at the bank said the White House’s unconventional policy approach, marked by:

should continue to support demand for gold. Those policies, it said, are likely to weaken the U.S. dollar and reinforce demand for hard assets as investors hedge against inflation and policy uncertainty. The bullish call underscores BofA’s view that gold’s multi-year rally is not yet over, even after record highs in 2025, as macro and political conditions continue to favour safe-haven flows. Bank of America’s Global Research division has released one of the boldest forecasts in today’s precious-metals market: gold reaching $5,000 per ounce and silver climbing to $65 per ounce by 2026. This call, coming from one of the world’s largest financial institutions, signals a major shift in how Wall Street views hard assets, inflation, and global financial stability.In this detailed breakdown, we explore why Bank...

These factors align with long-term themes that have historically preceded major gold bull markets.1. Rising Global Debt and Persistent Fiscal DeficitsGovernments worldwide are running large and sustained deficits, with debt-to-GDP levels reaching record highs. According to BofA analysts, this creates:Long-term currency debasement riskHigher structural inflationIncreased demand for real-asset hedgingGold historically performs best when confidence in fiat currency declines—a trend that is accelerating today.2. Central Banks Are Buying Record Amounts of GoldCentral banks purchased their highest volume of gold in decades throughout 2023–2025. This strategic shift away from the U.S. dollar supports a long-term floor under gold prices and signals that global institutions view gold as essential for sovereign stability, especially in a shifting geopolitical landscape.3.

Safe-Haven Demand Due to Global Tension and Policy VolatilityBofA highlights a trio of risks pushing investors into hard assets:Geopolitical conflict and global realignmentMonetary-policy uncertaintySlowing global economic growthDuring periods of instability, demand for physical precious... Underinvestment in Gold Despite New Record HighsEven with gold surpassing $4,000/oz in 2025, BofA notes that institutional portfolios remain underweight gold. This means:Higher prices have not scared away buyersThere remains significant room for additional inflowsGold’s rally is still in its early-to-mid stagesUnderallocated markets often experience the fastest price acceleration when sentiment shifts.Why Silver Could Outperform:... Tightening Supply and Growing Industrial DemandSilver is used heavily in:Solar cellsElectric vehicles (EVs)Semiconductor manufacturingHigh-end electronicsAI-driven data center infrastructureGlobal silver demand is expected to outpace production for multiple consecutive years, creating structural supply deficits that... Monetary Demand Mirrors Gold’s TrendSilver has a unique dual role—industrial metal and monetary metal.When gold enters a breakout cycle, silver typically follows with:Higher volatilityFaster upsideStronger retail investor interestThis is why silver is often referred... Liquidity Stress in Global Silver MarketsPhysical silver shortages have become more frequent, with London and U.S.

vaults reporting tightness. Lower available inventory means small surges in demand can push prices dramatically higher.How BofA’s Forecast Compares to Other Major InstitutionsBank of America isn’t alone in predicting higher precious-metals prices.Other institutions have raised their outlooks... Bank of America notes that precious metals could face headwinds if:The Federal Reserve keeps rates high for longerInflation cools faster than expectedGeopolitical tensions significantly de-escalateInvestors rotate back into growth and tech stocksHowever, even modest... Tangible Precious Metals Reduce Exposure to Currency RiskIn an era of rising deficits, political instability, and monetary experimentation, physical metals provide:Store-of-value protectionDiversification from stocks and digital assetsA hedge against inflation and systemic risk2. Dollar-Cost Averaging Helps Smooth VolatilityBecause prices can be volatile, many investors prefer consistent allocations rather than trying to time the market—especially with predictions this large.3. Precious Metals IRAs Are Becoming MainstreamWith banks projecting record-high gold and silver prices, more Americans are diversifying retirement accounts into:IRS-approved goldIRS-approved silverSelf-directed Precious Metals IRAsThis trend is accelerating heading into 2026.Final ThoughtsBank of America’s...

Between rising debt, monetary uncertainty, geopolitical tension, and growing demand for tangible assets, the long-term case for precious metals is stronger than ever.Even if prices don’t hit those exact targets, the message from major... Bank of America has released a bullish outlook for 2026, forecasting gold to hit $5,000 per ounce and silver to reach $65 per ounce — record highs for both metals. The projection is driven by rising fiscal deficits, potential rate cuts, and weakening U.S. dollar conditions that favor hard assets. BofA expects gold investment demand to rise 14%, while silver will remain supported by market deficits despite slowing demand.

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