Archive · 26 Jun 2025
BofA Predicts Gold Could Rise 20% by 2026 Due to US Fiscal Concerns
Imagine gold is like a safe place for money.
Experts at Bank of America think the price of gold will go up a lot because of the US government's plan to spend more money.
They think this is more important than wars and problems around the world.
Gold has already gone up a lot in price recently, because people are buying it up as a safe investment.
Because of government debt and spending plans, people might buy even more gold in the future.
Bank of America predicts gold prices could reach $4,000 per ounce by next year, about a 20% increase.
Gold prices have risen significantly in recent years, with gains of over 40% in the last 12 months and 180% over the past decade.
Analysts at BofA attribute the rising gold prices to fiscal concerns and the U.S. deficit, rather than geopolitical conflicts.
President Trump's proposed tax cuts and spending bill is expected to increase the federal deficit, which could drive gold prices higher.
Central banks worldwide continue to buy gold, and investors may seek gold's safety due to concerns about U.S. debt.
- Who
- Bank of America analysts
- What
- Bank of America predicts gold prices will rise.
- When
- By next year.
- Where
- Not specified
- Why
- Due to fiscal concerns about the U.S. deficit, rather than geopolitical events.
Geopolitical Impact
US Fiscal Concerns
Primary Drivers
Geopolitical Impact
Geopolitical events are often seen as drivers of gold price increases.
US Fiscal Concerns
Analysts believe geopolitical conflicts are not the long-term drivers of gold price growth.
- Current Gold Price
- $3,330 per ounce (approximate)
- Predicted Gold Price
- $4,000 per ounce
- Predicted Price Increase
- Approximately 20%
- US Debt-to-GDP Ratio
- 123%
- US Debt Maintenance Cost (May 2025)
- $776 billion
- Gold Return (Last 10 Years)
- 180%