Gold has held solid over the $3,000 barrier for more than a week, and according to leading analysts, this rally is far from over. Bank of America has now raised its gold price forecast, projecting prices as high as $3,500 within two years, according to a recent article on Kitco News. Meanwhile, experts point to growing investor demand, central bank diversification, and economic uncertainty as key drivers behind the metal’s continued strength.

Bank of America’s Bold Gold Forecast
Analysts at Bank of America have significantly increased their long-term gold price targets, expecting $3,350 in 2026—up from their previous estimate of $2,750. Looking further ahead, they see the potential for gold to reach $3,500 within two years, provided investment demand rises by 10%. While that’s a steep climb, it’s not out of reach.

 So where will this demand come from? Bank experts point to several key sources:

  • China’s insurance industry: If it allocates just 1% of its assets to gold, that would equate to roughly 6% of the total annual gold market.
  • Central banks: They currently hold around 10% of their reserves in gold but could increase that figure to over 30% for better portfolio efficiency.
  • Retail investors: Gold-backed ETFs have already seen a 4% increase in assets under management this year and many gold dealers, like United Patriot Coin, are seeing record-high levels of interest from new investors.

The Fed, Interest Rates  and Gold’s Path Forward
Despite the U.S. dollar holding support above 103 points, many analysts believe it won’t derail gold’s momentum. According to George Milling-Stanley, Chief Gold Strategist at State Street Global Advisors, the Federal Reserve’s neutral stance isn’t likely to pressure gold prices. “Guess what normally thrives in times of confusion and uncertainty? It tends to be gold,” he told Kitco News.

The Fed recently held interest rates steady while lowering its economic growth forecast to 1.7% and raising its inflation estimate to 2.7%. While markets are pricing in three rate cuts this year, any unexpected shifts in monetary policy could further propel gold prices upward.

How Geopolitics and “America First” Policies Could Impact Gold
Another major factor driving gold’s rise is central bank diversification away from the U.S. dollar. BofA analysts suggest that President Donald Trump’s potential trade policies could accelerate this trend. If a shift from “America First” to “America Alone” occurs, central banks may further reduce their U.S. dollar holdings, increasing their gold reserves instead. “We believe continued central-bank reserve diversification will be a key medium-term gold price driver,” BofA analysts noted.

With economic uncertainty, shifting monetary policies, and increasing investor demand, gold’s rally is built on a strong foundation. Whether you’re looking to hedge against inflation, diversify your portfolio, or take advantage of long-term trends, now is the time to pay close attention to the yellow metal.

The Easy Way to Step Into the Market
United Patriot Coin offers curated bundles of gold, silver and other precious metals products for clients looking to get an assortment of coins and bars for their portfolio. Orders can be one-time, or can be set up as a recurring monthly subscription, which makes for easy dollar-cost-averaging. Prices can even be locked for 12 months, so the buy-in cost is the same, even if the market goes up. The Gold Rush Box is a great way to start. Click here to compare all the boxes >>.

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