Wall Street is increasingly bullish on gold as the precious metal climbs to fresh highs.
Bank of America has raised its 18-month price target for gold from $3,000 to $3,500 per ounce. The bank bases this upgrade on a projected 10% increase in investment demand, driven by stronger buying from China, continued central bank purchases, and inflows into physically backed exchange-traded funds (ETFs).
That outlook echoes Macquarie Group’s similar forecast of $3,500 for the third quarter of 2025.
Analysts at JPMorgan have pointed out how unusually fast gold’s recent ascent has been. The rise from $2,500 to $3,000 took just 210 days, compared with a historical average of roughly 1,700 days for each $500 advance. Given that pace, some on Wall Street say a $4,000 level could be within reach.
Several factors are underpinning the rally. Trade policy decisions, including recent auto tariffs, have added uncertainty to markets. A weakening US dollar has also made gold more attractive as an alternative store of value. In addition, changes in global demand dynamics—such as the impact of frozen Russian assets after the Ukraine conflict—appear to have created a structural shift in how investors and institutions allocate to gold.
Investors and observers note that central banks continue to diversify reserves into the metal, while Chinese buyers and ETF investors remain key sources of sustained demand. These combined forces have contributed to heightened momentum and raised expectations for further gains in the months ahead.