Bank of America(US:BAC) Benzinga·2025-10-13 14:24Core Viewpoint - Bank of America has raised its 2026 price forecasts for gold to $5,000 per ounce and silver to $65, driven by supply tightness, policy uncertainty, and increasing investment demand [1][5]. Group 1: Gold Market Insights - A projected 14% increase in gold investment demand in 2026 could elevate prices to $5,000 or higher [3]. - ETF inflows into gold funds surged 880% year-over-year in September, reaching $14 billion, indicating strong investment interest [3]. - Gold investment demand now constitutes over 5% of global equity and bond markets, up from 2.8% two years ago, suggesting a significant shift in institutional positioning [4]. Group 2: Macroeconomic Factors - The macroeconomic environment remains favorable for gold, with expectations of looser monetary policy due to fiscal deficits and rising debt [5]. - A potential 28% increase in ETF flows could pave the way for gold prices to reach $6,000, although this is considered a challenging target [5]. Group 3: Silver Market Dynamics - Despite an expected 11% decline in total silver demand in 2026, silver is likely to remain in deficit for the fifth consecutive year due to insufficient mining supply [6]. - The shift in the solar industry to TopCon panels, which require less silver, is impacting demand dynamics [7]. - Tightness in the physical silver market has been noted, with increased lease rates in London indicating supply constraints [8]. Group 4: Price Projections - Bank of America anticipates potential price increases for gold and silver, projecting gold could rise to $5,000 per ounce and silver to $65 per ounce by 2026, despite acknowledging short-term risks [9].