Gold to rally over 80% over the next 18 months – Bank of America

Omkar Godbole FXStreet Contributor

Gold prices will rally more than 80% to $3,000 per ounce in the next 18 months, as trillions of dollars of monetary and fiscal stimulus launched by authorities across the globe are likely to put incredible pressure on the fiat currencies, Bank of America analysts said in a note on Monday, according to Business Insider.

Key points

Gold is the ultimate store of value during the severe economic downturn.

Beyond traditional gold supply and demand fundamentals, financial repression is back on an extraordinary scale.

There's also plenty of room for investors to pile into the metal. The positioning has been surprisingly weak despite a rally through late March, and momentum investors are only slightly long gold.

Gold is trading near $1,710 per ounce, representing a 0.20% drop on the day. The yellow metal has rallied nearly 10% so far this year.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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