Bank of America has set a striking new price target for gold along with a deadline.
The call comes as uncertainty surrounding Federal Reserve leadership and broader monetary policy builds.
Just last month, U.S. President Donald Trump chose Kevin Warsh as the new Federal Reserve chair to replace Jerome Powell. His appointment led to a sharp sell-off in gold.
Related: Fed’s Powell Sees Bitcoin as Gold Substitute
Warsh has been considered generally hawkish on policy. He was a Fed governor between 2006 and 2011 and was known to favor holding rates higher for longer, especially in the years after the global financial crisis.
In recent days, however, he has sounded more dovish. This has triggered discussions about which direction his policies would go.
On Feb. 18, the Federal Reserve released the FOMC minutes that indicated the rates as unchanged at 3.5%-3.75%.
Gold traditionally rallies during periods of policy uncertainty, inflation fears, and currency weakness. And right now, several of those forces are aligning.
However, when the news broke about his appointment on Jan. 30, gold and silver went through major corrections. Gold price fell 1.55%, at one point dropping as low as $4,893. Silver also dropped by 0.33%.
But for Bank of America, the new target for gold is $6,000 per ounce within the next 12 months, as reported by CNBC.
This would be an over 15% increase from its current price of $5,177.76, as of Feb. 25.
But history has shown that gold price can surge higher than that. In fact, it has climbed by 76.89% the past year.
Silver’s sharper move also reflects this dynamic.
Historically, silver acts as a higher-beta version of gold, rising faster during bullish phases but also facing more near-term volatility. The bank notes silver faces some immediate risks but sees potential for a rebound above $100 per ounce.
Gold’s resurgence inevitably revives comparisons with Bitcoin.
A few days ago, Bloomberg senior ETF analyst Eric Balchunas argued that the anxiety among Bitcoin holders is “very short-sighted.” Since 2022, Bitcoin has surged 429%, compared to gold’s 177%, silver’s 350% and the Invesco QQQ’s 140%.
In his words, Bitcoin “spanked everything so bad” in 2023 and 2024 that other assets such as gold and silver, even during their best years, have struggled to catch up.
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