• Bank of America forecasts gold could reach $5,000 per ounce by 2026, with an average price of $4,538 next year.
  • Strategists argue gold remains "underinvested" despite being technically "overbought," citing unusual U.S. economic policies as key support.
  • The bank also raised price forecasts for copper, aluminum, silver, and platinum, while noting palladium remains oversupplied.

Bank of America has delivered one of Wall Street's most bullish gold forecasts yet, predicting the precious metal could surge to $5,000 per ounce by 2026 as structural market forces continue to support prices.

In a research note circulated to clients Thursday, strategists led by Michael Widmer argued that while gold appears technically overbought after its recent record-breaking rally, the metal remains fundamentally underinvested given the current macroeconomic backdrop. The bank expects gold to average $4,538 in 2025 before making its run toward the $5,000 milestone.

"What we're seeing isn't just short-term positioning," said one person familiar with the bank's thinking. "The structural drivers—from constrained mine supply to low inventories and policy uncertainty—suggest this rally has room to run."

The forecast comes as gold continues to trade near all-time highs, buoyed by persistent central bank buying and demand from investors seeking havens amid uncertain interest rate policies and fiscal outlooks. Bank of America specifically pointed to "unusual U.S. economic policies" as providing ongoing support for bullion.

Supply constraints are tightening the market considerably. Mine production has struggled to keep pace with demand, while visible inventories remain low by historical standards. This comes as demand patterns have grown increasingly uneven, with central bank purchases remaining robust while other sectors show more volatility.

Bank of America's Widmer and his team see these conditions persisting through 2026, creating what they describe as a "perfect storm" for higher prices. The bank's analysis suggests gold could find technical support around $3,800 per ounce in late 2025 before resuming its upward trajectory.

Other metals are also expected to benefit from similar dynamics. The bank raised its 2026 price forecasts for copper, aluminum, silver, and platinum, reflecting expectations for ongoing supply-demand imbalances across the commodities complex. Palladium was the notable exception, with analysts describing the market as remaining oversupplied.

The bullish call places Bank of America at the more aggressive end of Wall Street forecasts, though it's not alone in its optimism. Société Générale has also floated the $5,000 possibility, while Morgan Stanley and Goldman Sachs have published targets of $4,500 and $4,900 respectively for late 2026.

Attempts to reach Bank of America strategists for additional comment were unsuccessful Thursday afternoon. Trading desks reported steady interest in gold derivatives following the report's publication, though volumes remained within normal ranges.

Correction: An earlier version of this article misstated the timing of Bank of America's research note distribution. It was circulated Thursday, not Wednesday.