Consolidation is only for new highs? Bank of America: Gold price is still on track towards $6000, tariffs and Fed variables will become catalysts.

The Global Research Department of Bank of America stated in a report on Thursday that in the next 12 months, the price of gold is expected to break the historical level of $6,000 per ounce. The uncertainty brought by the leadership change in the Federal Reserve, combined with the economic risks triggered by US tariff policies, is prompting more funds to flow into the gold market. However, the bank also acknowledges that in the short term, the price of gold may face resistance as investors need time to adapt to higher price levels. The report indicates that the pace of investors increasing their holdings in gold has slowed down, "so we expect that the price of gold may weaken temporarily before the spring. However, due to the renewed uncertainty of tariffs, this consolidation period may be relatively short-lived." As for silver, analysts at Bank of America remain relatively cautious. They stated, "The trend of silver is more complex, and we are concerned that prices may further decline in the short term," but they also do not rule out the possibility of silver returning to $100 per ounce. On Thursday, as the third round of US-Iran nuclear talks began in Geneva, investors chose to wait and see, leading to a slight decrease in gold futures and the end of a seven-day rising trend for silver. As of Friday's press time, spot gold rose 0.17% to $5,194.01 per ounce, while spot silver rose 1.80% to $89.8895 per ounce. Forex.com analyst Razan Hilal stated in the report, "This week, gold and silver attempted to break through resistance levels of $5,200 and $90 respectively, but both failed to maintain their upward momentum. If there is an agreement on geopolitical issues in the short term, the downside risk for gold and silver will increase."