Bank of America Raises Gold Target to $6,000, Citing Supply Drop
Bank of America analysts raised their 12-month gold price target to $6,000 per ounce, citing a 2% output drop by the 13 major North American gold miners in 2026 and $14 billion ETF inflows. They cited structural tailwinds from U.S. fiscal deficits, near-3% inflation and Fed policy uncertainty.
1. Gold Price Target Revision
Bank of America updated its 12-month gold forecast to $6,000 per ounce, asserting that recent market volatility has overstated downside risks and that fundamental drivers remain intact for a prolonged rally.
2. Supply and Demand Dynamics
Analysts anticipate a 2% decline in 2026 output from the 13 leading North American gold miners, while investors poured $14 billion into gold ETFs in September 2025, marking a historic inflow spike that underscores growing portfolio allocations to the metal.
3. Policy and Macro Tailwinds
Structural tailwinds include U.S. fiscal deficits at record-high levels, inflation near 3%, and uncertainty over Federal Reserve leadership and policy direction, all seen as catalysts for sustained gold demand and price appreciation.
4. Silver Outlook and Risks
Bank of America flagged silver’s potential rebound above $100 per ounce, citing ongoing structural deficits but warned of near-term volatility if the gold-to-silver ratio remains wide or if economic data prompts a hawkish Fed stance.