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Bank Of America Sees Gold's Price Reaching $3,000 An Ounce By Yolowire.com – Investing.com

yolowire.com – Commodity analysts at BankofAmerica (NYSE: BAC) predict that gold prices will hit US$3,000 per ounce within the next 12 to 18 months.

This outlook is based on continued purchases of gold bullion by central banks around the world and interest rate cuts by the US Federal Reserve, which could lead to inflows into physically backed gold exchange-traded funds (ETFs).

“Continued purchases by central banks will also be important and any moves to reduce the weighting of US dollars in foreign exchange portfolios will likely encourage further central bank gold purchases,” Bank of America said in a client note.

Analysts say gold continues to be seen as a long-term store of value, a hedge against inflation and an effective portfolio diversifier.

Bank of America says these attributes make it an ideal investment in the current environment of rising inflation and geopolitical uncertainty.

The bank also noted that a recent survey by the World Gold Association revealed that central banks plan to increase their gold purchases in the coming months.

Bank of America said interest rate cuts and volatility in the Treasury market could fuel gold buying later this year.

Gold prices have risen about 15% this year and are currently trading at $2,338 an ounce.

This content originally appeared on Yolowire.com.