BofA maintains $6K 12-month price target for gold

Michael Widmer, head of metals research at Bank of America (BofA), stated that gold prices will face short-term pressure as expectations for U.S. interest rate cuts recede. However, he maintained a bullish outlook on the precious metal, reaffirming a forecast for it to reach $6,000 per ounce within the next 12 months. The current pressure on gold stems from the market's reassessment of inflation risks and the path of U.S. interest rates amid rising energy prices due to the conflict in the Middle East. Despite these headwinds, Widmer projected that gold prices will continue to rise in the medium term, supported by sustained purchases from central banks, a recovery in investment demand, and slowing economic growth indicators.