Bank of America: Gold prices are expected to hit $3,000 in the future

On June 25th, Bank of America analysts predicted that the price of gold could soar and is expected to reach $3,000/oz in the next 12 to 18 months. However, they acknowledged that the current market flow does not necessarily support this price target. BofA explained that reaching $3,000 depends on an increase in non-commercial demand. They believe that the Federal Reserve's interest rate cut could trigger this situation, causing funds to flow into physically backed gold ETFs and increasing trading volume. In addition, central bank purchases are another key factor. "It is also important for central banks to continue buying gold, and efforts to reduce the share of the dollar in foreign exchange portfolios could prompt more central banks to buy gold," BofA said.