When Wall Street is making big bullish forecasts, it can indicate that it’s time to be defensive. That’s not a call to dump stocks and go all-in on the risk-off trade, but strategic investors either want to be in assets where capital will grow or be best protected. This brings up a more bullish forecast for gold (and also for silver). Also please keep in mind that gold is up 30% YTD and silver is up 35% YTD.
BofA Securities global research team has raised its forecast for gold and silver as 2026 gets closer. The team’s view is that long-term value in gold and silver are higher by 25% and 30%, respectively. Just understand that this is not an outlandish call as the long-term forecasts are meant as a floor because they are under the price of both metals today.
The price targets and opinions referred to in this report are from BofA Securities. Oggonomics does not maintain price targets for the stocks and commodities outlined in this reporting.
BofA’s longer-term view is now up to $2,500 for gold and $30 for silver. Both are under current prices — gold was $3,400 and silver was closer to $39. Its average gold price for the next 6 years was raised by 6% to $3,049 per ounce, and the average silver price was raised by 7.5% to $38 per ounce. BofA’s near-term gold forecasts remain unchanged. Those are $3,356 in 2025 and $3,659 in 2025; and it remains bullish on gold with a short to medium term target of $4,000.
Multiple reasons were cited:
- U.S. structural deficit
- Inflationary pressure from deglobalization
- Perceived threats to independence of U.S. central bank
- Global geopolitical tensions & uncertainty
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BofA also gave multiple price objective hikes in the top gold mining stocks. The largest price objective hike was Newmont Corporation (NYSE: NEM) with a 19.5% increase to $104 per share (versus $72.97 close). The firm’s top North American precious metals stock pick for 2025 remains Agnico Eagle Mines (NYSE: AEM) with a $209 price objective (versus $139.11 close). The reason for AEM as its top pick:
We like it for its leading track-record on meeting or beating guidance and executing projects, suite of attractive growth projects, significant exploration upside potential within its portfolio, and asset location in top jurisdictions (primarily Canada, Australia, and Finland).
Oggonomics always likes to remind its readers that no single analyst call should ever be the sole reason to buy or sell a stock (or other assets). Analysts can get their outlook wrong, and market fundamentals can change in an instant.
