Bank of America has projected a major increase in precious metals prices for 2026, forecasting gold to reach 5000 dollars per ounce and silver to climb to 65 dollars per ounce. These updated targets come despite expectations of near-term market consolidation and potential volatility. The bank maintains its bullish stance, citing strong macroeconomic support and rising investment demand for both gold and silver.
Gold prices are expected to average around 4438 dollars per ounce throughout the year, while silver is predicted to maintain an average price of 56.25 dollars per ounce. This latest outlook follows Bank of America's previous successful call that gold would reach 4000 dollars, and analysts now see a possible upward path to 6000 dollars per ounce. However, achieving this would require a 28 percent increase in investor purchases, which the bank acknowledges as a challenging but not impossible scenario.
The driving factors behind the positive gold outlook include persistent fiscal deficits, growing national debt, continued capital inflows, and a likely reduction in interest rates despite inflation remaining around three percent. These economic conditions are expected to support gold as a safe-haven asset, making it attractive to both institutional and retail investors. In fact, recent data shows exchange-traded fund (ETF) purchases of gold surged by 880 percent year-on-year in September, reaching a record 14 billion dollars. Combined physical and paper gold investment now exceeds five percent of total global equity and fixed income markets.
Regarding silver, Bank of America also sees significant potential, although demand is projected to decline by 11 percent in the coming year. Despite this drop, a supply deficit is still anticipated, which should help support silver prices. A key factor in the reduced demand forecast is the expected peak in silver use within the solar energy sector, particularly in photovoltaic panel production. However, even with weakening industrial demand, silver remains well-positioned due to its dual role as both an industrial metal and an investment asset.
Bank of America emphasizes that both gold and silver are in strong uptrends and continue to benefit from investor interest and global economic shifts. While short-term market corrections may occur, the long-term outlook remains positive for precious metals heading into 2026.