Both yellow and white metals are on the verge of a stunning rally. Gold and silver are once again at the peak of popularity. Analysts at BofA Research have raised their medium-term price target for gold by 25%, to $4,000 per troy ounce. What lies behind such optimism? The catalysts that have set the stage for the gold rally in recent years remain the same. The bank also revised its long-term price target for silver by 30% to $35 per ounce.
The new forecast anticipates consistently high demand for gold driven by structural issues in the US economy, including the fiscal deficit combined with inflationary pressures from deglobalization, concerns over the independence of the Federal Reserve, and rising geopolitical tensions.
Against this backdrop, BofA analysts raised their six-year forecast for gold by 6%, to $3,049 per ounce, and their silver forecast by 7.5%, to $38 per ounce. At the same time, the bank maintained its short-term forecasts, keeping the 2025 gold estimate at $3,356 per ounce and the 2026 estimate at $3,659 per ounce. Besides, experts reaffirmed their short- and medium-term target for gold at $4,000 per ounce.
The upgraded forecasts also led to higher price targets for mining companies. As a result, the target price for Gold Fields was raised by 17% to 640 South African rand (up from the previous 547 rand), while the target for Harmony Gold was adjusted to 260 rand from 250 rand. According to BofA’s currency strategists, higher-cost producers could see significant valuation gains amid rising precious metal prices.
The bank emphasized that long-term price estimates are critical for mining companies, as such reckonings affect reserve calculations, capital allocation, and cash flow intensity.
