Gold Could Climb Above $5,000 an Ounce Within Two Years, Bank of America Projects

Bank of America’s investment strategists, led by Michael Widmer, have unveiled an ambitious projection for precious metals markets. The institution forecasts that gold prices may surpass the $5,000 per ounce threshold by 2026, driven by structural factors that are likely to remain intact throughout the forecast period.

The strategists present an intriguing paradox in their analysis: despite gold appearing overextended in the near term, the asset class remains significantly underallocated within investor portfolios. This positioning creates a compelling case for sustained upside as institutional money continues rotating into precious metals amid what Bank of America characterizes as unconventional U.S. economic policies.

Price Projections and Market Drivers

For 2026, Bank of America has set its average gold price target at $4,538 per ounce, positioning this as a near-term plateau before potential advances toward $5,000. The bank attributes this resilience to several converging factors: constrained precious metal supplies from mining operations, historically low inventory levels across trading hubs, and demand patterns that remain unevenly distributed across end-users and investors.

Beyond gold, Bank of America has recalibrated its forecasts for other precious metals and industrial commodities. The bank raised its outlook for silver, platinum, and copper worth per ounce, reflecting broader confidence in commodity market strength. Copper specifically is expected to benefit from technological transitions and infrastructure demands. However, palladium represents an outlier in this constructive scenario, with Bank of America maintaining that the market continues to grapple with persistent oversupply conditions that may pressure prices through the forecast horizon.

This multi-commodity reassessment underscores how shifting macroeconomic dynamics are reshaping the investment case for raw materials across the board.