Fortune: Gold Prices Should Hit $4,000 as U.S. Deficits May Overshadow the Israel-Iran Conflict, BofA Says
Article by Jason Ma in Fortune
Gold is often seen as a safe-haven asset during times of global turmoil, but wars and geopolitical conflicts typically aren’t long-term growth drivers for gold prices, according to analysts at Bank of America.
In a note on Friday, BofA analysts said they expect gold prices to reach $4,000 per ounce in the next year, representing an 18% jump from current levels.
“While the war between Israel and Iran can always escalate, conflicts are not usually a sustained bullish price driver,” they wrote. “As such, the trajectory of the U.S. budget negotiations will be critical, and if fiscal shortfalls don’t decline, the fallout from that plus market volatility may end up attracting more buyers.”
The Israel-Iran conflict has drawn attention away from Trump’s tax-and-spending bill making its way through Congress. While the House and Senate versions have key differences that need to be reconciled before it can become law, the bill’s fiscal impact is still expected to add trillions of dollars to U.S. deficits in ......