For the past two and a half years gold investors probably reevaluated the prospects of this asset all the time and experienced many doubts. However, the situation has changed now. Bank of America (BofA) analysts believe that gold will be an important part of investors’ portfolios in the following three years.
The bank’s commodity strategist Michael Widmer noted that interest in gold has been rather weak over the last quarters. It was partially driven by the strengthening of the U.S. dollar and interest rate hikes, which did not give the precious metal a chance to increase. At present, Widmer gives it an optimistic macro outlook for 2023 and further.
According to Widmer, the revenue breakdown analysis demonstrates that gold will have good results until at least 2026. Although, as the analyst stated, the precious metal might become a reliable asset for portfolio diversification in a more long-term outlook as well.