The gold price remains well above the $ 1,700 mark. Of course, the main target of Bank of America’s price target is being discussed this week. The US bank’s analysts have spent a target price of $ 3,000 on gold. And this target is to be achieved in 18 months. Marco Uome discusses with Markus Bußler whether this target is actually realistic or whether the Bank of America just wanted to get attention with the study.
“Bank of America very bullish”
“Bank of America has been very bullish for the gold price in the past and had already set a target price of $ 2,000 for gold before Corona,” says Markus Bußler. The measures taken by central banks around the world would have made analysts even braver. Is this price target realistic? Given the immense amount of fresh money being pumped into the market, low interest rates close to 0 and the associated expropriation of savers, gold is likely to come into focus again. “$ 3,000 gold is of course possible – whether this can be achieved in 18 months is on a different sheet of paper.” However, it is also not a question of achieving a specific price target at a specific point in time x. Rather, it is about the trend being right. “Hardly anyone will be mad when gold is $ 2,500 in 18 months,” says Markus Bußler.