BofA hikes gold’s 2026 target to $5,000; sees silver testing $65 but with this caution

Bank of America on Monday raised its price forecasts for both gold and silver while not ruling out a near-term correction. BofA has lifted the yellow metal price target for the 2026 outlook for gold to $5,000 an ounce, with an average of $4,400. For the white metal, the target is placed at $65 an ounce, averaging $56.25, Reuters reported.

“The White House’s unorthodox policy framework should remain supportive for gold given fiscal deficits, rising debt, intentions to reduce the current account deficit/capital inflows, along with a push to cut rates with inflation around 3%,” the report said, quoting the US-based lender.

Bank of America is the first major bank to raise its gold price forecast to $5,000/oz for 2026.

Price of gold in the international market was hovering around $4,096.50 per troy ounce today at 6:50 am CT (5:21 pm India Time) while silver rate today around this time was 49.660, up by $2.41 or 5.1%.

Silver which has delivered over 70% returns this year so far, crossed $50 mark last week for the first time ever. Meanwhile, gold gains are over 55% in 2025 year-to-date. Spot silver scaled a record high of $51.70/oz.

Spot gold breached the $4,000 per ounce mark last week and is currently trading at $4,073.69 as of 1010 GMT. It has gained 55% so far this year.BofA said that for gold to rally to $6,000/oz, investors will need to increase their purchases by 28%.The bank expects silver prices to remain firm, even though it anticipates an 11% decline in demand next year, citing a continued supply shortfall. According to the Silver Institute, the metal is on track to record its fifth consecutive year of a structural market deficit.It added that the London market has tightened significantly due to the movement of silver to New York in anticipation of tariffs that ultimately didn’t materialize—a situation reflected in the sharp rise in lease rates.

“There is scope for recent dislocations to slowly start to normalise, which could then also increase volatility and put pressure on silver quotations near-term,” the bank noted.

Meanwhile, personal finance author and ‘Rich Dad Poor Dad’ fame Robert Kiyosaki has been bullish on silver, calling it and cryptocurrency Ethereum (ETH) “hot, hot, hot” in a recent social media post.

Kiyosaki, known for his long-standing advocacy of precious metals as a hedge against inflation and economic instability, predicted that silver could soon hit $75 per ounce, after recently crossing the $50 mark.

Also Read: “Hot, Hot, Hot”: Robert Kiyosaki on silver and Ethereum, sees white metal hitting $75(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)