Bank of America maintains a 12-month gold price target of $6,000 per ounce; short-term pressure persists but medium-term bullish outlook remains unchanged

Golden Ten Data reported on May 26 that Michael Widmer, Managing Director and Head of Metals Research at Bank of America, stated that due to declining expectations for US interest rate cuts, gold prices will face pressure in the short term. However, the bank maintains its bullish outlook on gold and reiterates its forecast that gold prices will rise to $6,000 per ounce in the next 12 months. Currently, the pressure on gold is related to the market's repricing of inflation risks and the US interest rate path amid surging energy prices caused by the Middle East conflict. Despite these pressures, supported by continuous gold purchases by central banks, a rebound in investor demand, and weakening economic growth indicators, gold is expected to continue rising.