tl;dr
Bank of America and Goldman Sachs have raised their gold price targets amid increasing geopolitical tensions. Bank of America forecasts gold reaching $4,000 an ounce within 12 months, a 17% increase from current levels. Goldman Sachs projects gold will hit $3,700 by the end of this year and $4,000 b...
Bank of America and Goldman Sachs have projected a significant rise in gold prices, forecasting the precious metal to reach $4,000 an ounce amid escalating geopolitical tensions. Gold prices have already surged about 30% year-to-date, driven by fears of a broader Middle East conflict and increased demand from central banks.
Recent Israeli airstrikes on Iranian targets have heightened market uncertainty, contributing to elevated gold prices. Bank of America predicts gold will climb to $4,000 within 12 months, representing a 17% increase from current levels. Goldman Sachs anticipates gold will hit $3,700 by the end of this year and then surge to $4,000 by June 2026, fueled by strong central bank interest.
Currently, gold is trading around $3,395, up 30% year-to-date but slightly below its April peak of $3,500. Daniel Pavilonis, senior market strategist at RJO Futures, notes that escalating fears of a wider Middle East conflict—especially after Israel’s recent strikes on Iranian military targets—are driving gold prices higher. Market participants expect elevated prices to persist as the region braces for possible retaliations.
These developments highlight gold's role as a safe-haven asset during times of geopolitical uncertainty, with major financial institutions updating their forecasts in response to rapidly shifting global dynamics.