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Gold Prices Set To Climb To $3,000 On Fed Rate Cuts, Geopolitical Tensions, Bank of America Says

Gold Prices Set To Climb To $3,000 On Fed Rate Cuts, Geopolitical Tensions, Bank of America Says
Gold prices may soar to $3,000/oz in 12-18 months due to increased investment demand and geopolitical tensions.

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Gold prices are predicted to rise to $3,000 per ounce within the next 12 to 18 months, according to Bank of America's latest analysis. The bank's commodity strategist, Michael Widmer, attributes this potential surge to a combination of factors, including increasing investment demand, geopolitical tensions, Federal Reserve rate cuts, and central bank purchases. Central bank purchases, in particular, remain a crucial factor supporting gold prices, with the World Gold Council's latest Central Bank Survey indicating a continued appetite for gold among monetary authorities. China's strategic shift to sell USD and buy gold is also contributing to this trend. Bank of America forecasts that if the Federal Reserve cuts rates and the U.S. dollar weakens, investor buying will drive gold prices higher. Additionally, in an environment of declining liquidity and resiliency in the Treasury market, gold is expected to maintain its allure as a safe haven asset.

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