Bank of America Corp (NYSE: BAC) is the latest financial institution to predict that the price of gold and silver will continue rising past already historic heights. The precious metals rally has made many investors turn their attention to mining stocks and bullion.
On Monday, the bank lifted its price forecast for gold up to US$5,000 per ounce and silver to US$65 an ounce. The commodities could potentially reach these heights by the end of 2026, the Bank of America believes. On average, the second-largest United States banking house says gold will sit at US$4,400 next year and silver will hover around US$56.25.
“The White House’s unorthodox policy framework should remain supportive for gold given fiscal deficits,” the bank said, “rising debt, intentions to reduce the current account deficit/capital inflows, along with a push to cut rates with inflation around 3 per cent.”
Gold just ascended above US$4,000 per ounce for the first time last week. This rally surpassed the expectations of Goldman Sachs Group Inc (NYSE: GS), which predicted in late September that it wouldn’t reach that price until half way through next year. Now, Goldman has changed its forecast to US$4,900 per ounce by December of 2026.
The Bank of America’s team, led by Head of Metals Research Michael Widmer, has warned that there may be a near-term correction to this upswing but is bullish about its price in 2027 and beyond.
“For a rally to US$6,000/oz, investors need to increase their purchases by 28 per cent,” the team of analysts said, “not impossible, but a tall order.”
Meanwhile, the researchers say that heightened demand for silver in solar applications will help drive its price up going into the new year. The analysts are expecting an 11 per cent decline in demand overall, but predict that a substantial supply deficit and increasing popularity in the solar panel sector will help counteract that decline.
Silver rose above US$52 per ounce this week, a high not observed since the early 1980s. Many believe the metal’s climb is only beginning. Alongside gold, its appeal as a safe haven asset has been rising amid economic turbulence and uncertainty.
Furthermore, the growing popularity of electric vehicles has become another catalyst. Globally, EVs consume approximately 10 million ounces of the commodity per annum.
Many Analysts Say Silver Is Criminally Undervalued
As an example, they point out that in virtually any historical era, the price ratio between gold and silver was much closer than it is today. The highest ratio ever recorded was 1 to 15. Meanwhile, currently, even on a good day,… pic.twitter.com/aPF29s4BO8
— Jack Straw (@JackStr42679640) October 7, 2025
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