Bloomberg News: Gold to Reach $3,000-50% Above Its Record, Bank of America Says

Article by Elena Mazneva in Bloomberg News

Bank of America Corp. raised its 18-month gold-price target to $3,000 an ounce -- more than 50% above the existing price record -- in a report titled “The Fed can’t print gold.”

The bank increased its target from $2,000 previously, as policy makers across the globe unleash vast amounts of fiscal and monetary stimulus to help shore up economies hurt by the coronavirus.

“As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure,” analysts including Michael Widmer and Francisco Blanch said in the report. “Investors will aim for gold.”

“But beyond traditional gold supply and demand fundamentals, financial repression is back on an extraordinary scale,” the report said.

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