Bank of America maintains 12-month gold target price at $6,000/ounce, focuses on opportunities to rebalance with Bosera Gold ETF (159937) after retracement

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　　Recently, the international gold price has been fluctuating around $4,500 per ounce. On the news front, reports that the US and Iran are about to reach a ceasefire agreement have boosted market sentiment, with expectations that the Strait of Hormuz will reopen, resulting in an international oil price plunge of over 5%, and easing inflation concerns. Meanwhile, a lower US dollar index has provided valuation support for gold, silver, and other non-interest-bearing assets.

　　Michael Widmer, Managing Director and Head of Metals Research at Bank of America, stated that due to decreasing expectations for US interest rate cuts, gold prices will face short-term pressure. However, the bank maintains its bullish view on gold and reiterates its forecast that the gold price will rise to $6,000 per ounce within the next 12 months. The current pressure on gold is mainly related to the market's repricing of inflation risk and the path of US interest rates in the context of the Middle East war pushing up energy prices. Despite these pressures, with continued gold purchases by central banks, recovering investor demand, and weaker economic growth indicators, gold is still expected to continue rising.

　　Institutions generally believe that although gold prices may remain volatile in the short term, global central bank demand for gold, geopolitical uncertainties, and long-term concerns over the US dollar system all provide solid support for gold assets. After previous adjustments, valuation pressure on the gold sector has eased. Major international banks such as Goldman Sachs and UBS remain optimistic about gold's long-term prospects, predicting a year-end target price between $4,900 and $5,600.

Editor: Zhu Henan