BofA Says Gold to Reach $3,000 in 18-Months 50% Above Its Record

(April 21,2020 - Elena Mazneva - Bloomberg News)

Bank of America Corp. raised its 18-month gold-price target to $3,000 an ounce -- more than 50% above the existing price record -- in a report titled “The Fed can’t print gold.”

Analysts including Michael Widmer increased the target from $2,000 previously, as policy makers across the globe unleash vast amounts of fiscal and monetary stimulus to help shore up economies hurt by the coronavirus.

“As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure,” the report said. “Investors will aim for gold.”

To be sure, a strong dollar, reduced financial market volatility, and lower jewelry demand in India and China could remain headwinds for gold, BofA said.

“But beyond traditional gold supply and demand fundamentals, financial repression is back on an extraordinary scale,” the report said.