BofA experts forecast gold prices to rise to $4,000

Bank of America (BofA) analysts continue to maintain a bullish outlook for gold, despite the lack of significant upward momentum amid tensions in the Middle East. Gold prices typically rise in response to such events. However, this rise is not always guaranteed, the bank's experts note.

This does not prevent BofA from remaining optimistic about the future prospects for gold. A group of analysts led by Michael Widmer estimates that the precious metal has every chance of reaching $4,000 per ounce due to sustained demand from both retail and institutional investors.

Besides geopolitical tension, interest in safe-haven assets is also fueled by concerns over US government debt, which have intensified amid official review of Donald Trump's tax reforms. Another reason is a weaker dollar. At last, gold prices will receive additional support in case of monetary policy easing by the US Federal Reserve (Fed), BofA experts conclude.