Glass Half Empty view: in a video last Friday, Bank of America's head of global commodities Francisco Blanch discusses the outlook for gold prices as the precious metal extended its decline on easing trade tensions. "We still like gold in the long run, but we have a US$3,500 per ounce target and we believe for now the peak might be in," he tells Bloomberg Television in this ~3 minute video.
Note: to be fair to Francisco, this was before credit ratings agency Moody's downgraded the US sovereign credit rating by one notch on Friday to Aa1, citing continued growth in the national debt and rising debt servicing costs amid still-high interest rates. With this latest action, the US government has now lost its last remaining AAA rating from a major ratings agency; S&P downgraded the US during 2011, and Fitch followed during 2023.
Glass Half Full view: in an article dated 15 May 2025, Goldman Sachs Research predicts gold will rise to US$3,700/oz by the end of 2025 (from US$3,220/oz on 15 May 2025) as central banks buy many tonnes of the precious metal every month.
The commodity is also likely to climb as ETF investors increase their holdings in anticipation of interest rate cuts and amid growing recession concerns. In the event of a recession, Goldman Sachs Research forecasts that gold could rise to as much as US$3,880/oz.
These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.
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