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BofA highlights four key policy dimensions of the incoming US administration that could suppress gold demand in the near term by driving higher rates and a stronger USD. However, these bearish factors do not derail BofA’s longer-term bullish outlook for gold, with a price target of $3,000/oz by end of 2025.
Key Points:
Conclusion:
While near-term policies under the incoming US administration present significant headwinds for gold through stronger growth, higher inflation, and a robust USD, BofA maintains its $3,000/oz target for end of 2025. This longer-term optimism reflects enduring structural and cyclical factors that support gold demand, even amidst challenging policy environments.
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