Bank of America: Maintain gold's 12-month target price of US $6000/oz Short-term pressure but medium-term bullish logic unchanged

On May 26, Michael Widmer, managing director and head of metals research at Bank of America, said that gold prices will come under pressure in the short term due to declining market expectations for a US interest rate cut. However, the bank remains bullish on gold and reiterates its forecast that gold prices rise to US$6000 per ounce in the next 12 months. The current pressure on gold is related to the market's repricing of inflation risks and the U.S. interest rate path against the backdrop of the Middle East war pushing up energy prices. Despite these pressures, gold is expected to continue to rise, supported by continued gold purchases by central banks, rising investor demand and weakening economic growth indicators. (Jin Shi)