Bank of America keeps US$6,000 gold target as precious metals rally broadens

By AI, Created 11:13 AM UTC, May 20, 2026, /AGP/ – Bank of America is sticking with a US$6,000-an-ounce gold forecast as central bank buying, a weaker dollar and geopolitical risk reshape the precious metals outlook. The call comes as silver and platinum also draw stronger demand, a shift that could matter for Australian investors watching inflation and currency moves.

Why it matters: - Bank of America’s unchanged 12-month gold target signals that one of Wall Street’s biggest banks still sees room for bullion to climb despite near-term volatility. - The outlook matters for Australian investors because gold is already trading around US$4,600 per ounce, or about AUD $6,400, and higher global prices can affect local bullion demand and portfolio hedging. - The same research points to a broader precious metals upswing, with silver and platinum also supported by supply and demand shifts.

What happened: - Bank of America reaffirmed its 12-month gold price target of US$6,000 per ounce on May 4, 2026. - The bank’s commodities research team cited central bank accumulation, a structurally weaker US dollar and sustained institutional demand as the main reasons for the forecast. - Gold rebounded from a one-month low earlier in the week and was trading near US$4,600 per ounce at the time of the report. - The Gold King, a Gold Coast-based precious metals dealer, said it tracks live prices for gold bullion, silver bullion and platinum bullion as market conditions shift.

The details: - Ongoing conflict in the Middle East has pushed oil prices higher and disrupted supply through the Strait of Hormuz, adding to inflation concerns. - Kitco News reported that rising oil prices are forcing central banks to rethink the timing of monetary easing. - The World Gold Council said central banks increased their gold reserves in the first quarter of 2026. - China, Poland, India and Turkey have all added to reserves in recent months. - Bank of America expects silver to average US$86 per ounce through 2026. - Platinum continues to benefit from supply constraints in South Africa and rising industrial demand linked to hydrogen fuel cell technology.

Between the lines: - The gold call is not just a view on inflation. It also reflects a broader de-dollarisation trend and stronger demand for assets seen as outside the US financial system. - Central bank buying can give gold a more durable floor even when short-term headlines, such as oil spikes or changing rate expectations, create volatility. - Silver and platinum strengthening at the same time suggests investors are looking beyond gold alone for inflation hedges and industrial exposure.

What’s next: - Gold traders will watch whether higher oil prices keep inflation elevated and delay rate cuts. - Further central bank reserve buying could reinforce the bullish case for gold through 2026. - Silver and platinum prices will likely remain tied to the same mix of macro risk, supply constraints and industrial demand. - Australian bullion markets will keep reacting to moves in US dollar pricing, inflation expectations and geopolitical developments.

The bottom line: - Bank of America still sees gold as a structural winner, and the bank’s call suggests precious metals could stay bid if inflation, conflict and central bank buying continue to dominate the market.