In the report titled, “The Fed Can’t Print Gold” Bank Of America says gold price to reach $3000 per ounce. Michael Widmer and the team elevated its 18-month price target.
As already bullish on the yellow metal, forecasting a record $2,000 per ounce within the next year-and-a-half raised its price. Banks increased its target from $2,000 as policymakers across the globe lose lots of fiscal and monetary to help support economies hurt by the coronavirus.
“As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double. Also, fiat currencies could come under pressure,” analysts including Michael Widmer and Francisco Blanch said in the report. “Investors will aim for gold.”
Gold will have to fight with a strong US dollar and there will be no demand from places like India and China. These can’t stop gold from hitting $3,000 in 18 months as Widmer predicts.
Nobody wants to get hold of dollars in the present situations and the best bet is only on “Gold”.We have to wait and see as the Bank of America says gold price to reach $3000 in the future.