Gold Could Reach $2,500 per Ounce in 2023: BOFA Strategist
• Bank of America (BOFA) commodity strategist predicts that gold could reach $2,500 per ounce by 2023.
• Gold has already risen 19% in six months and 1.33% in the last 30 days.
• Central banks have been purchasing large amounts of gold, with China’s reserves increasing 18 tons in March 2023.
Bank of America Predicts Price of Gold Could Reach $2,500 Per Ounce
A Bank of America (BOFA) commodity strategist has postulated that gold could rise to $2,500 per ounce should it continue to flourish in 2023. Presently priced at just shy of the $2,000 threshold, a 26% increase against the U.S. dollar would be required to hit this target if achieved this year.
Non-Commercial Purchases Do Not Need To Increase Materially For Gold To Hit $2,500
Gold has already seen impressive performance during the year thus far, with its price soaring by over 19% in just six months and a notable 1.33% spike over the past 30 days alone. The BOFA strategist stated that non-commercial purchases need not increase significantly for gold to hit their projected milestone target this year and suggested inflows into ETFs will be important indicators for whether price gains can be sustained and maintained long-term.
Central Banks Have Been Buying Large Quantities Of Gold In 2023
Central banks have been purchasing large amounts of gold since 2022 which continues into 2023 – China boosted its national reserve’s holdings by 18 tons in March alone – according to World Gold Council statistics. Google Trends data also shows that searches for “how to buy gold” peaked during the first week of April this year with a perfect score 100 indicating high levels of interest from investors looking to add the precious metal to their portfolios.
Fed Likely To Stop Raising Rates Later This Year According To BOFA Strategist
A note released by senior economist Aditya Bhave earlier this month predicted Fed rate hikes would persist throughout 2023 however a subsequent report from BOFA’s commodity strategist suggests otherwise – markets are pricing imminent rate cuts as core inflation remains elevated and central banks have no silver bullet for fighting inflationary pressure according to the report released this week .
Conclusion: BOFA Commodity Strategist Predicts Gold Could Reach $2500/oz By End Of Year
In conclusion, it appears that Bank of America’s commodity strategist believes there is potential for gold prices to reach $2500/oz by end of year should current trends continue – non-commercial purchases do not need to increase significantly but inflows into ETFs will be an important indicator as central banks continue buying large quantities at present time while markets anticipate rate cuts later on in 2021 due rising inflationary pressures across all sectors .