Bank of America anticipates gold prices reaching $5,000 per ounce by 2026, a projection issued in a recent global metals strategy note, according to reports from Investing.com and Nabd.com.
The bank’s assessment, dated October 28, 2025, indicates that the recent surge in gold prices is not atypical, and further increases are expected. Michael Widmer, commodities strategist at Bank of America, stated that the price rise has been driven by a combination of macroeconomic factors. Although the market is currently “overbought,” Widmer believes the magnitude of the current increase is comparable to previous gold bull markets since 1970.
Bank of America forecasts an average price of $3,800 per ounce in the fourth quarter of 2025, followed by a further increase to $5,000 per ounce in the following year. The bank’s analysis suggests that gold bull markets typically end when the underlying fundamental drivers change.
The updated portfolio allocation by Bank of America, announced in early June 2025, reflects a broader shift in commodity markets driven by easing trade tensions and positive economic indicators, including a surprise in the U.S. GDP for the first quarter of 2025. This restructuring places metals – including gold, silver, and copper – at the center of the bank’s new strategy.
According to Investing.com Saudi Arabia, individual investors who purchased gold as a hedge against economic policies are expected to maintain these positions through the end of the year. This sustained demand is likely contributing to the bank’s optimistic outlook.
The bank’s revised strategy also indicates a reassessment of energy commodities, with a reduced weighting for oil and natural gas. This shift does not necessarily signal the end of the traditional energy era, but rather a recalibration based on current market conditions and economic forecasts.
