Bank of America Merrill Lynch is officially forecasting gold prices to hit $2,400 an ounce, according to its latest forecasts, but one analyst at the bank says prices could climb even higher to around $3,000.
Gold is currently trading just shy of $1,750 an ounce and has been gaining on the coattails of central bank stimulus measures, in the United States especially, which weaken paper currencies to spur growth and make hard assets like gold attractive hedges.
“We remain secular bulls on gold. Key chart and uptrend supports between $1,600 and $1,400 have held and we have viewed $1,550-1,500 as a good area to buy gold,” BofA Merrill Lynch analyst Stephen Suttmeier wrote in a note to clients, according to Business Insider.
“[T]he secular bull market for gold points to a stronger rally to $2,050-$2,300 and up to $3,000 longer term. The top of the rising channel from mid-2005 is near $2,375 and reaches the $3,000 area by early 2014.”
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