Bank of America Projects Higher Gold Prices in 2015 Posted by Brian Ford on July 01, 2014
Bank of America Merrill Lynch has updated its gold price forecasts for the rest of 2014 and 2015, and the bank’s latest figures may be partly responsible for today’s $11.90 jump in the gold spot price. As of 1pm CST gold had climbed to a monthly peak of $1329.30 per ounce on the COMEX division of the New York Mercantile Exchange (NYMEX).
“We believe that market participants are increasingly willing to raise their exposure to gold as a hedge against inflation,” BAML says. The bank’s analysts believe gold could stay above the $1,300 mark for the foreseeable future, and the bank’s official forecast calls for the first quarter of 2015 to see gold prices in the $1,350 range. B of A may need to update their estimates yet again in the near future, however, as the current gold spot price is dangerously close to that projected peak and thus could become outdated if the yellow metal continues to rally.
While B of A’s latest gold price projection may be partly responsible for moving the market today, other factors also played significant roles. Gold’s extended amount of time below the $1,325 mark motivated some bargain-hunters, and when gold finally crossed the $1,325 plane it created a slew of technical buying on behalf of institutional investors and household investors alike. Additionally, the U.S. dollar index fell slightly this morning, forcing the gold price upward. For regular gold market updates as well as a free 26-page guide on understanding the gold market, call the Certified Gold Exchange today at (800) 300-0715 or choose up to four free gold investing e-guides via the offer box at the end of this article.