Bank of America Raises 18-month gold target to $3000 from $2000
Forecast average prices of $1695 this year and $2063 in 2021.
“Our CTA models suggest gold positioning is light, likely because of the spike in volatility and the mechanical drop in the gold Sharpe ratio. But this constraint could change as volatiltiy keeps falling quickly across financial markets,” they write.
See as safe-haven from risks for central bank moves being socialized and currencies come under pressure.
On the downside is slower jewelry demand from China and India could be a headwind for gold but that “financial repression is back on an extraordinary scale.”