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4d ago

Gold Pulls Back on Middle East Truce and Trade Optimism, but BofA Holds $4,000 Target

Rising US fiscal deficits are expected to sustain gold’s rally toward $4,000 next year

One of the main reasons behind gold drop is the ceasefire between Iran and Israel.
Silver prices in the US dropped down on Friday, with the spot price around $36.44 per ounce.
Right now, gold trades near $3,330 per ounce, up more than 40% over the past year.
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Overview

  • Gold slid about 1.3% to $3,283.56 per ounce after a ceasefire between Israel and Iran and progress on a US-China trade framework eased haven demand
  • Silver remains near multi-year highs around $36.4 per ounce with a weaker dollar and ongoing safe-haven flows
  • Bank of America analysts maintain a 2026 gold forecast of $4,000 per ounce, citing President Trump’s “Big and Beautiful” plan and mounting US deficits as primary drivers
  • Global central banks continue to boost gold reserves, contributing to a more than 40% price increase over the past year
  • US debt-to-GDP topping 123% and interest payments consuming 16% of federal spending are expected to underpin further gold demand despite short-term profit taking