Bank of America has cut its year-end gold forecast 11%. They have a forecast of $1,150 an ounce and silver at $18.38 an ounce.
“If investors stopped selling gold, prices could stabilize around $1,200/oz. Yet, this is not our base case and a more likely scenario is for investors to continue reducing their exposure. Our models suggest that this could take prices down to $1,000/oz,” the report states.
They cite a challenging macro environment and persistently low inflation.
