Silver Breaks $50 for the First Time Since 1980 –
Bank of America analysts are forecasting a significant surge in gold prices to $4,000 per ounce over the next year, representing an 18% jump from current levels. This prediction comes after gold has already experienced a remarkable 30% gain this year, reaching an all-time high of $3,500 in April during the US-initiated tariff war.
However, the bank’s analysts challenge the conventional view that geopolitical conflicts drive gold prices long-term. They note that gold actually dipped 2% following Israel’s recent airstrikes on Iran, suggesting that wars aren’t sustainable price drivers for the precious metal.
Instead, BofA attributes the potential rally to mounting concerns over US fiscal health. President Trump’s tax-and-spending bill currently moving through Congress could add trillions in deficits, raising serious questions about debt sustainability and the dollar’s future status. Meanwhile, global central banks are accelerating their shift away from US assets, with gold now comprising 20% of global reserves while the dollar’s share has declined to 46%. This “de-dollarization” trend, combined with fiscal uncertainties, could attract more buyers to gold as a safe haven.
