Bank of Americas forecast of gold prices.
Merrill Lynch expects a growth in the prices of gold
Bank of America (BofA) is one of the biggest bank holding companies in the US listed as the 23rd largest company in the world in 2015 by Forbes magazine. In 2008, BofA acquired the investment bank Merill Lynch as a subordinate and became a major player in the banking market. Founded back in 1914, this corporation has been thriving for over 100 years.
Today, the bank’s visionary analysts share their gold prices forecast for 2017. According to them, gold can amount to $ 1,475 per ounce. This information was published by The Financial Times on 8th July, referring to the official Merill Lynch’s press release.
Gold hits a peak of $ 1,371 on 6th July
Bank of America had already predicted a rise in gold prices up to $ 1,325, but Brexit pushed them even higher. On 23rd June, the day of the referendum, gold prices firstly fell sharply as investors were waiting for the results of the referendum. Nevertheless, gold shot up at the end of the day, hitting a peak of $ 1,336 on the following day. And this figure was already higher than the one mentioned in the bank's earlier forecast.
Within the next two weeks, prices have been steadily increasing. On 6th July, gold prices reached a new value of $ 1,371 per ounce. Nowadays, the market is slightly paused since prices mildly fell to $ 1,334.
Gold is a guarantee of safety
According to BofA, financial risks are inevitable. Investing can be risky to a certain extent, as it is influenced by many different factors. However, gold is a reliable safe-haven asset against economic uncertainty.
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Soros, Faber, and the Union Bank of Switzerland trust in gold
